If no premium was paid at application, coverage typically begins:

The correct answer is that coverage typically begins on policy delivery and premium collection, particularly if no initial premium was paid at the time of the application. In many insurance practices, a policy cannot go into effect without first receiving the premium. This ensures that the insurance company has received some form of financial commitment from the policyholder before coverage is active.

When a policy is delivered, it is standard for the insurer to require the payment of the first premium. This can be seen as a safeguard for the insurance company, establishing that the applicant is committed to maintaining the policy by fulfilling the premium obligation. Thus, even if the application date may suggest a beginning of coverage, without the premium payment at that time, actual coverage will not commence until the policy is formally delivered and the premium is collected.

Regarding the other options, while coverage can be backdated to the application date in some cases where a premium was collected, without payment, the start of coverage is contingent upon the delivery of the policy and receipt of the first premium. Simply putting the policy into effect upon issue would bypass a critical step in the insurance process, which can lead to potential losses for the insurer. The other options do not accurately reflect the standard procedure regarding when coverage initiates without an upfront premium payment