State RegulationsPA specificDifficulty 3/5
An applicant submitted a premium with the application and received a conditional receipt. The insurer approves the policy as applied for, and the producer then delivers the policy, obtains the signed delivery receipt, and collects the required statement of good health. Under Pennsylvania delivery rules, including 40 P.S. § 625.4, coverage generally takes effect:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Pennsylvania delivery rules center the effective date on delivery plus satisfaction of the receipt's conditions. Under 40 P.S. § 625.4 and the conditional-receipt structure, the applicant's coverage attaches when the policy is placed in the owner's hands with a signed delivery receipt and the required statement of good health confirms the insurability the insurer priced. Only then has the insurer received exactly the risk it approved — the principle the delivery machinery exists to enforce.
Why the other options are wrong
- A) The application date controls nothing by itself; the receipt's conditions and delivery must be completed first.
- C) No automatic fixed waiting period attaches to every delivery; the effective date turns on delivery and the receipt's conditions.
- D) Printing the policy is an internal clerical step and does not place the coverage into the owner's hands.
Memory hook
Approval plus delivery plus conditions = effective. Printing plants start nothing.