If a producer completes an insurance application, collects the initial premium, and issues the appropriate receipt, coverage will?

The correct answer reflects the common practice in the insurance industry regarding when coverage officially begins after an application is completed. When a producer completes an insurance application, collects the initial premium, and issues a receipt, it indicates that the application process is underway. However, the actual start of coverage typically hinges on the insurer's underwriting policies.

Underwriting involves assessing the risk associated with the applicant before the policy is approved. This means that while the premium may be collected and a receipt issued, coverage will not be effective until the insurer reviews the application, assesses the risk, and officially accepts the application. Therefore, coverage is contingent upon this underwriting process being completed satisfactorily, which aligns with the provided answer as it emphasizes the importance of the insurer's guidelines in determining coverage initiation.

Other options suggest specific timelines for when coverage might start, such as after a certain period or upon policy delivery. However, these options overlook the necessity of underwriting, which is a critical step in the process before any coverage can be confirmed or begins.