The initial premium for an accident and health insurance policy is typically paid in what way?

• A. Directly by the insured to the insurer
• B. It is typically obtained by the agent and forwarded to the insurer
• C. Paid in installments to an affiliated bank
• D. Waived for new policies

Answer: (A)

When a new accident and health policy is issued, the initial premium is what activates the coverage. Paying directly to the insurer is the most common and straightforward method because it finalizes the contract right away, giving the insurer a clear, verifiable record of payment and enabling the policy to go into force without delay. While an agent may collect premiums on behalf of the insurer in some situations, direct payment to the insurer at the outset remains the standard practice. The other options aren’t typical: paying to an affiliated bank isn’t how initial premiums are usually handled, and there’s no waiver of the premium for new policies.