PSI Ohio Insurance Practice Exam 2025 - Free Ohio Insurance Practice Questions and Study Guide

Question: 1 / 400

The life insurance policy will not be truly effective until all of the following occur EXCEPT:

The insured has signed the application.

The first premium has been paid.

The producer has explained the policy to the client.

The life insurance policy becomes effective when several key conditions are met, but the explanation provided by the producer to the client is not a requirement for the policy to be considered valid.

The insured must sign the application to indicate their acceptance of the terms. Payment of the first premium is typically necessary, as this secures the policy and activates coverage. The insurer's approval confirms that they have reviewed the application and decided to accept the risk of insuring the individual. However, the producer explaining the policy to the client, while certainly beneficial and often a standard practice in the industry, does not affect the legality or effectiveness of the policy itself. Therefore, the correct answer identifies that the explanation given does not have to occur for the policy to take effect.

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The insurer has approved the application.

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