An individual life insurance policy issued in California generally takes effect when:

Why A is correct

Under California law (CIC §10113.6), an individual life insurance policy takes effect when the policy is delivered to the policyowner and the initial premium is paid. The delivery marks the completion of the offer-and-acceptance process: the application is the offer, and delivery with the premium constitutes the insurer's acceptance and the start of coverage. Delivery may be made by hand, by mail, or electronically as permitted by law, and the delivery receipt is used to acknowledge that the policy and required documents were received, also starting the free-look period.

Why the other options are wrong

• Signing and submitting the application is the offer, not the acceptance. Coverage does not begin merely because the application has been filed with the insurer. Accordingly, this option is not correct because it does not match the specific rule or product that is described in the question.
• Internal approval by the insurer makes the risk acceptable, but coverage does not begin until the policy is delivered to the owner and the premium is collected. This option therefore does not match the facts presented in the question and is not the correct answer to select.
• The free-look period begins after delivery and gives the owner the right to return the policy for a refund; it is not the starting point of coverage. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.

Memory hook

No delivery, no premium, no coverage; delivery of the policy starts it all.