Connecticut Life Producer Practice exam

When is a life insurance policy delivered to the applicant?

1. After approval of the claim

2. Once the first premium is paid

3. When the applicant completes health questionnaires

4. Only after a medical exam is passed

The correct answer is: Once the first premium is paid

A life insurance policy is typically delivered to the applicant once the first premium is paid. This is grounded in the contractual nature of insurance policies. The delivery of the policy marks the point at which the coverage officially begins, as it signifies that the insurer has accepted the risk and the policyholder has met the necessary requirements, including the payment. The process generally involves the applicant completing all underwriting requirements, such as providing health information or undergoing medical examinations. However, the policy is not formally active or delivered until the first premium is received. This payment confirms the applicant's intent to enter into the contract and secures coverage, leading to the issuance of the policy document. While a medical exam and health questionnaires might be essential steps in the underwriting process, they do not alone facilitate the delivery of the policy. Coverage typically hinges on the applicant's willingness to commit to the policy financially through premium payment.