Which of the below statement is correct?

A. The proposal form acceptance is the evidence that the policy contract has begun

B. The acceptance of premium is evidence that the policy has begun

C. The First Premium Receipt is the evidence that the policy contract has begun

D. The premium quote is evidence that the policy contract has begun

Answer: Option C

Solution(By Examveda Team)

Life insurance policy receipt issued upon payment of the first premium by an applicant. It makes the policy in force before the policy documents are issued, provided the applicant meets all requirements. Also called conditional receipt.