If an applicant pays the initial premium and passes underwriting, coverage typically begins:

In the context of life insurance, coverage typically begins on the date the conditional receipt is issued, given that the applicant has paid the initial premium and has passed the underwriting process. This receipt acts as a temporary coverage document that provides the applicant with assurance that, pending underwriting approval, they are covered from the date of the receipt.

The reason this is significant is that the conditional receipt indicates that the insurer agrees to provide immediate coverage under specific conditions, primarily that the applicant meets the underwriting criteria. If the company ultimately approves the application, the coverage continues without interruption from the date of the conditional receipt.

While the application signing, policy delivery, or policy approval dates are important milestones in the insurance process, they do not necessarily activate the coverage in the same way. The application signing date does not inherently provide coverage; instead, it's the issuance of the conditional receipt that signifies the start of coverage pending the completion of underwriting. Therefore, when the initial premium is paid at the time of application and the conditional receipt is granted, that date is the crucial point at which coverage begins, making it the correct answer.