Willy Dye goes applies for life insurance. The agent takes Willy's application and his first premium payment, and issues Willy a conditional receipt for the payment. The next day Willy is run over by a sewage truck and killed

An autopsy shows that Willy was in excellent physical condition, and would thus have been issued an insurance policy had he lived. What will the insurer do?
A) Pay Willy's beneficiary the full death benefit because coverage existed from the date the receipt was issued
B) Not pay Willy's beneficiary because he died before the policy could actually be issued
C) Not pay Willy's beneficiary because a conditional receipt does not take effect until after the underwriting process is completed
D) Pay the beneficiary an amount equal to the premiums Willy paid for the policy

A