What is required for a policy to take effect when the initial premium is paid after the application?

For a policy to take effect when the initial premium is paid after the application, it is necessary for the insurer to obtain a statement of good health. This requirement ensures that the applicant is still in acceptable health at the time the premium is paid and before the policy is issued. If the applicant's health has changed since the application was submitted, the insurer needs this information to reassess the risk and whether to issue the policy under the original terms.

A binding receipt typically provides immediate coverage from the moment the application is submitted and the premium is paid, but if paid after the application is submitted, the insurer will likely require the statement of good health to finalize the policy. An inspection report is often part of the underwriting process but is not a specific requirement for the policy to take effect under these circumstances. Therefore, the statement of good health is essential and relevant in this context, making it the correct answer.