Question

What does a first premium receipt (FPR) signify? Choose the most appropriate option.

a.

Free-look period has ended

b.

It is evidence that the policy contract has begun

c.

Policy cannot be cancelled now

d.

Policy has acquired a certain cash value.

Posted under IC38 Life Insurance Agent Exam

Answer: (b).It is evidence that the policy contract has begun Explanation:A first premium receipt (FPR) signifies that the policy contract has officially commenced. It serves as evidence that the policy is in effect and that the premium payment has been made. It does not indicate the end of a free-look period, cancellation status, or the acquisition of cash value.

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Q. What does a first premium receipt (FPR) signify? Choose the most appropriate option.
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