What constitutes a completed sale in life insurance?

In the context of life insurance, a completed sale occurs when the first premium payment is made, either in full or in part. This is crucial because the obligation of the insurer to provide coverage typically begins once the initial premium is received. It signifies that the applicant has taken a significant step toward securing their insurance policy, and it allows the insurer to process the application and start the coverage, even if not all eventual underwriting conditions, such as medical examinations, have been met.

While a medical examination could be necessary for certain policies, it does not constitute a completed sale on its own, as coverage can be effective with just a valid initial premium payment. Payment via a note or requiring full cash payment are specific modes of payment but do not define the occurrence of a completed sale. The key factor here is that any form of payment communicates the applicant's commitment, thereby initiating the contractual relationship between the insurer and the insured.