Question

1 on january 20, 2018, bradleys policy was delivered to him dated january 15, 2018. bradley gave his agent a cheque dated january 25, 2018, towards the first premium. he accepted the policy and signed a declaration of insurability conditions on january 20, 2018. when will his policy come into effect?
a. the insurer will confirm the date the policy comes into force in a letter addressed to him.
b. january 15, 2018
c. january 25, 2018
d. january 20, 2018

Explanation:

In insurance, a policy typically comes into effect when the insured accepts the policy and meets the insurability conditions. Bradley accepted the policy and signed the declaration of insurability on January 20, 2018. The policy delivery date (Jan 15) is just when it was delivered, and the cheque date (Jan 25) is for premium payment, but the key action of accepting and meeting conditions was on Jan 20. Option a is incorrect as the policy's effective date is determined by the acceptance/insurability action, not a later letter. Option b is the delivery date, not effective. Option c is the cheque date, related to premium, not policy effect.

Answer:

d. January 20, 2018