Which of the following is a consequence of not collecting a premium at the time of application?

Delaying the issuance of the policy is a valid consequence of not collecting the premium at the time of application. In life insurance transactions, the premium payment is often required upfront to initiate coverage. When the premium is not collected, the insurance company typically will not issue the policy until payment is received. This process is crucial because the premium is what secures the coverage being requested. Without it, the insurer has no contractual obligation to provide coverage, leading to a potential delay in activating the policy.

The other options suggest scenarios that are not typically associated with the absence of an initial premium payment. For example, automatic coverage cannot begin without a premium, as that is a foundational element of the insurance contract. Similarly, decisions made by underwriters are generally not reversible based solely on payment issues, and the application process does not require the producer to return the application if the premium has not been collected; rather, it may just remain pending.