Tennessee Insurance Practice Exam

What is delivered during a policy delivery?

1. Insurance contract to the proposed insured

2. Premium payment receipts to the insured

3. Policy summary documents for reference

4. Claims forms for future use

The correct answer is: Insurance contract to the proposed insured

During a policy delivery, the essential action is delivering the insurance contract to the proposed insured. This step is crucial because the insurance contract outlines the terms and conditions of the coverage, including the rights and obligations of both the insurer and the insured. It's the formal completion of the insurance application process, transferring ownership of the policy to the insured, and ensuring they understand their coverage. Providing additional materials like premium payment receipts, policy summary documents, or claims forms may be beneficial as part of a broader service, but they do not constitute the primary purpose of policy delivery. The core function of this event is to finalize the agreement between the insurer and the insured through the official transfer of the policy document itself.