According to the Insurance Act, when does coverage for an insurance policy commence?

Coverage for an insurance policy typically commences at 12:01 a.m. standard time at the address of the Named Insured. This timing is significant because it establishes a clear and standardized point for when the insurance contract becomes effective, ensuring that both the insurer and the insured have a mutual understanding of when coverage begins.

By setting the commencement of coverage at this specific time, the Insurance Act aims to avoid any ambiguity about the inception of the policy. It is essential for both parties to know exactly when the coverage starts to manage risk and expectations effectively. This standard helps to clarify duty timelines, such as when claims can be made under the policy and when the insurer's liabilities begin.

The focus on the "Named Insured" is also important, as it signifies that specific individuals or entities named in the policy hold the rights and responsibilities associated with that coverage. Factors like the specific address of the risk or the insurer's location are less relevant to the actual effective date of coverage, which is why those references do not align with the definition set forth in the Insurance Act.