The delivery receipt that an applicant signs when a life insurance policy is delivered in California serves to:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under California Insurance Code Section 10113.6, a life insurance policy may be delivered personally, by mail, or by another acceptable method. The signed delivery receipt confirms that the policy was received and acknowledges delivery to the applicant, and it triggers the start of the free-look period during which the insured may return the policy for a refund. The free-look period gives the insured time to review the policy and return it if it does not meet expectations. The receipt is therefore an important administrative document that protects both the insurer and the insured. Agents should ensure the delivery receipt is signed and dated when the policy is handed over.
Why the other options are wrong
- Dividends are never guaranteed by a delivery receipt; dividends depend on the participating policy's experience and are declared annually, not promised at delivery.
- A delivery receipt acknowledges that the policy was received; it does not create permanent binding coverage, which begins with policy issuance.
- The receipt does not waive the free-look right; it begins the free-look period during which the policy may be returned.
Memory hook
The delivery receipt is the 'you got it' signature that starts the clock on the free-look period.