State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
When a life insurance policy is delivered to the applicant, why is a delivery receipt usually obtained from the insured?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A delivery receipt is signed by the insured to acknowledge that the policy has actually been received and delivered. Delivery is the point at which the contract generally becomes effective, and the receipt documents that delivery occurred on a certain date, which also establishes when the free look period begins. In California, the manner of delivery is governed by Insurance Code Section 10113.6, and the policy must be delivered by an acceptable method so the insured can review the contract before the free look clock starts running.
Why the other options are wrong
- B) The receipt does not shift liability for the agent's acts to the insured; it is simply proof of physical delivery of the policy. The agent's responsibilities remain with the agent; the insured's signature proves only that delivery happened.
- C) Signing the receipt does not waive contestability rights; those rights are governed by the policy's incontestability clause and are not affected by delivery. The incontestability clause continues to run normally from the issue date regardless of the receipt.
- D) Premium payment is documented separately when money changes hands; the delivery receipt proves delivery of the policy, not payment. Payment is evidenced by the premium receipt, a completely separate document from the delivery receipt.
Memory hook
Delivery receipt = proof the contract changed hands, and the free look timer starts.