When does insurance coverage typically begin?

Insurance coverage typically begins upon policy delivery or the issuance of a conditional receipt because these steps indicate that the insurer has accepted the risk and the terms of the policy. When a consumer applies for insurance, they may receive a conditional receipt if they pay the premium at the time of application, which can provide coverage before the policy is formally issued. This conditional receipt often outlines specific conditions under which the coverage is active, even if the actual policy has not yet been finalized.

The delivery of the policy also marks the point at which the insured is officially notified of coverage particulars and can start utilizing the benefits. Both situations emphasize that coverage is linked to the acceptance of the application and payment, rather than just the signing of the policy or completion of underwriting. Thus, understanding when coverage begins is crucial for policyholders to be aware of their protection status.