Question: Great Neck Saw applied to Manhattan Life Insurance Co. for a life insurance policy in the amount of $1 million for coverage of one of its corporate officers. It submitted the application and was told by one of Manhattan's agents that the coverage was in effect. It never received a receipt or policy, however. The application stated that no insurance would take effect until a policy had been issued and delivered. The proposed insured died two days after the application was delivered to Manhattan. Manhattan refused to pay the policy proceeds, claiming that no coverage ever existed. Is Manhattan correct? (Great Neck Saw Mfr. v. Manhattan Life Ins., 163 A.D.2d 273)