Under what condition can coverage begin according to underwriting regulations?

Coverage typically begins when the premium has been paid because most insurance policies stipulate that the commencement of coverage is contingent upon receipt of the initial premium. This is a fundamental principle in the insurance industry, ensuring that the insurer receives compensation in exchange for the coverage provided.

While a complete application and passing medical examinations are important steps in the underwriting process, they alone do not guarantee that coverage has started. Underwriting involves assessing the risk and determining the terms of the policy, but without the payment of the premium, the contract is not in effect. Therefore, in accordance with underwriting regulations, the payment of the premium is the critical factor that activates the coverage.