When is an insurance contract considered to be executed?

An insurance contract is considered to be executed when both parties have agreed to the terms, which typically occurs when the application is accepted, and the premium is paid. In this context, paying the premium is a crucial step because it signifies the insured's acceptance of the coverage offered and the insurer's commitment to provide that coverage.

Additionally, while the issuance of a policy is often the formalization of the contract, the execution itself has typically taken place once the premium is paid and the terms are clear to both parties. This payment signals that the insured acknowledges and accepts the conditions laid out in the policy, allowing the insurer to start covering risks.

It's also worth noting that just issuing a quote doesn't constitute an executed contract since a quote is merely an estimate and not a formal agreement. The same applies to the policy issuance, which finalizes the contract but does not create it per se. Thus, the payment of the premium stands out as the definitive act that establishes the contract and commits both parties to their obligations.