At what time does coverage typically bind when a policy is issued?

When a policy is issued, coverage typically binds at 12:01 AM on the effective date of the policy. This timing is significant as it marks the beginning of the policy's coverage period.

Using 12:01 AM as the starting point ensures that there is clarity regarding when the coverage begins, allowing for a full 24-hour coverage day. It is standard practice in insurance policies to define the effective time in this manner, helping avoid confusion about coverage availability on the effective date. Additionally, this allows policyholders to know exactly when to expect their coverage to start without ambiguity, ensuring that they are properly protected from that moment forward.

The other time options, while they might seem plausible, do not align with the typical industry standard for binding coverage. For instance, 12:00 PM could suggest a midday start, which is less common in policy language. As such, effective times like 11:59 PM or 12:00 AM are not as widely used for indicating the start of coverage compared to the clear designation of 12:01 AM.