Policy Delivery

Policy Delivery in Life InsurancePolicy delivery is a vital step ensuring the policyholder receives and understands the insurance contract.

1. Delivery Process

   • Role of the Producer:

     • Deliver the policy and collect unpaid premiums.

     • Explain policy details, including benefits, ratings, endorsements, exclusions, and riders.

     • Obtain required signatures.

   • Delivery Types:

     • Constructive Delivery: Issued by insurer when premium is paid, mailing to producer.

     • Legal Delivery: Physical delivery by the producer to the insured.

2. Substandard Policies and Counteroffers

   • If issued substandard, producer must hand-deliver the policy, collect additional premium, and explain changes.

   • Applicant's Acceptance: Necessary for contract effectiveness; coverage starts only upon acceptance.

3. Collecting Premiums and Verifying Health

   • Initial premium must be collected before coverage starts.

   • Statement of Good Health required if premium unpaid; confirms health hasn't changed since application.

4. Methods of Delivery

   • Personal Delivery: Signed receipt confirming receipt by insured.

   • Registered/Certified Mail: Signed receipt for proof of delivery.

The Insurance Policy serves as the formal contract, containing key information:

• Insurance Company Name, Insured and Policyowner Names, Face Amount, Policy Description, Policy Number, and Anniversary Date.

• The Insuring Clause guarantees the death benefit to beneficiaries, binding the insurer's executive officers signing the contract. Proper storage and review are necessary for policy effectiveness.