Question

Because Sylvia paid the initial premium when her policy was delivered, in order for the policy to be in effect, the agent is required to obtain: ______________.

Answer 1

The agent must obtain an acknowledgment of receipt or similar confirmation to ensure the insurance policy is in effect after Sylvia has paid the initial premium.

Step-by-step explanation:

When Sylvia paid the initial premium, for the policy to be in effect, the agent is required to obtain an acknowledgment of receipt or a similar form of confirmation that the policy has been delivered and accepted.

This acknowledgment serves as proof that the insurer has issued the policy to the insured and that the insured has commenced their part of the contract by paying the premium.

In the case of an insurance policy, this step is crucial because it finalizes the purchase and puts the coverage into effect, ensuring that the insured is part of the risk group covered under the terms of the policy.