In a situation where an insured does not receive their Accident and Health policy, which statement is correct?

The reasoning behind why the policy is considered to be in force, despite the insured not having received it, revolves around fundamental principles in insurance contracts. Once an application for insurance has been accepted and the premium has been paid, the insurer is obliged to provide coverage under the terms of the agreed-upon contract.

The failure of the insured to receive the policy does not negate the existence of the insurance contract. As long as the application has been approved and the payment is confirmed, the policy is legally binding and effective. This means that the coverage provided by the policy is active and protects the insured, even if they do not physically have the document in their possession. The insurer remains responsible for fulfilling the terms of the policy and providing the benefits outlined therein.

While it can be troubling for the insured not to have their policy document for reference, it does not alter the fact that the coverage is, in essence, still in effect. Resending the policy may be a good solution to ensure that the insured has access to all the necessary details, but it doesn't change the active status of the policy.