James signed an application for a $50,000 life insurance policy and paid the first premium on October 1. The agent issued a conditional receipt. A week later, James took the required medical examination and was found to be insurable. If he dies before the insurer approves the application,
A) the coverage will be retroactively effective, but the policy will only pay $25,000
B) no coverage will be provided
C) the coverage will be retroactively effective
D) no coverage will be provided, but James's premium will be refunded"
Ans: C) the coverage will be retroactively effective
Business
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Indicate whether the statement is true or false
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