Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Why does the insurer ask the insured to sign a delivery receipt when a life insurance policy is delivered?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The delivery receipt serves to document that the policy was physically delivered to and accepted by the insured. Delivery is significant because, together with payment of the initial premium, it typically marks the point at which coverage under the delivered policy takes effect, and it also starts the free-look period during which the insured may return the policy for a refund. The receipt protects both the insurer and the insured by creating a clear record of when the policy went into force and when the review period began.
Why the other options are wrong
- B) The free-look right is a statutory protection and cannot be waived by signing a delivery receipt; the receipt in fact confirms the free-look clock has started.
- C) A delivery receipt grants no authority to change beneficiaries; beneficiary changes require the policyowner's signed request.
- D) Agent commissions are a compensation matter between the agent and insurer and are not evidenced by the insured's delivery receipt.
Memory hook
Sign the receipt, coverage clock starts, free look begins.