On July 1, a producer accepts an application and the annual premium for a health policy. On July 15, the insurance company issues the policy, but the producer does not deliver it until August 15. If the insured decides not to accept the policy and returns it to the producer on August 24, the company will:

relend the full premium

refund the premium minus a prorated amount for the forty days of coverage

refund sot months of the premium

retain the full premium