When a life insurance policy is delivered, the primary purpose of having the policyowner sign a delivery receipt is 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
A delivery receipt documents the date the policy is delivered to the policyowner and acknowledged as received. In California, CIC §10113.6 governs policy delivery, and the delivery date typically starts important time frames, including the free-look period during which the owner can return the policy for a refund. (The two-year contestability period runs from the policy's date of issue under CIC 10113.5, not from the delivery date.) The receipt does not transfer ownership, guarantee cash values, or re-verify health; those are set by the policy itself and by underwriting. The receipt mainly protects both insurer and insured by establishing when delivery occurred.
Why the other options are wrong
- B) Ownership is determined by the policy contract and owner designation; signing a delivery receipt never transfers ownership.
- C) Cash value guarantees are written in the policy contract, not created by the delivery receipt.
- D) Health status was already evaluated in underwriting before delivery; the receipt does not revisit it.
Memory hook
Delivery receipt = the timestamp that starts the free-look clock.