Life insurance agent Auggy took a life insurance application from Karen, along with a first premium cheque, and submitted them to his sponsoring insurance company. The insurances companys underwriting department approved and issued the contract as applied for and sent it to Auggy to deliver to Karen. Auggy took the policy to Karen, who confirmed that her status had not changed since the date of application and signed the delivery receipt. At what point in these transactions did a binding contract between Karen and the insurance company come into effect?