Which term refers to COD; occurs if you haven't collected premiums?

Which term refers to COD; occurs if you haven't collected premiums?

• A. Cash On Delivery
• B. Delivery Receipt
• C. Mode
• D. Accumulate

Answer: (A)

Cash On Delivery describes a payment arrangement where the premium is paid at the time the policy is delivered, rather than before. When premiums haven’t been collected yet, this is the specific setup used—the payment is due upon delivery. That’s why this term fits the scenario best. A Delivery Receipt is just the record that delivery occurred, not a payment term. Mode refers to the method of payment in general, but it doesn’t specify that payment is collected at delivery, and Accumulate isn’t related to payment timing.

Cash On Delivery describes a payment arrangement where the premium is paid at the time the policy is delivered, rather than before. When premiums haven’t been collected yet, this is the specific setup used—the payment is due upon delivery. That’s why this term fits the scenario best. A Delivery Receipt is just the record that delivery occurred, not a payment term. Mode refers to the method of payment in general, but it doesn’t specify that payment is collected at delivery, and Accumulate isn’t related to payment timing.