Question

M completes an application for health insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
policy is delivered

free-look period has expired

insurance company issues policy

initial premium is collected

Answer 1

Answer:

All of these actions must occur before M's policy goes into effect except the expiry of the free-look period.

Explanation:

• Soon after the application for the health insurance is submitted and accepted, the free-look period comes into effect.
• During this period, specifically, the buyer of the policy is not mandatorily required to pay the initial premium for the policy.
• This is the reason the period has been named as 'free-look period'.
• Hence, it can be said that M has not paid the initial premium because the free-look period has not expired yet.