Multiple choice

In case the premium payment is made by cheque, then which of the given statements will hold true?

  1. The risk may be assumed on the date on which the cheque is posted.

  2. The risk may be assumed on the date on which the cheque is deposited by the insurance company.

  3. The risk may be assumed on the date on which the cheque is received by the insurance company.

  4. The risk may be assumed on the date on which the cheque is issued by the proposer.
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A Correct answer
Explanation

Correct Answer: The risk may be assumed on the date on which the cheque is posted.

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