What Is Policy Delivery? Definition

Why it matters

After approval, the carrier issues the policy and sends it. The owner should read it and check names, beneficiaries, the death benefit, and the premium. The free look period, set by state law and the policy, lets the owner cancel for a refund. Some carriers pay the agent only after delivery requirements are met. Families who see errors should contact the agent or carrier fast. Rules and timing vary by state and carrier.

Source: naic.org

Related terms

Free Look: Free look is the period after a policy is delivered during which the owner can review it and cancel for a refund of premiums. The length is set by state law and the policy, and often ranges from 10 to 30 days.
Free Look Period: A free look period is a set time after you receive a policy when you can cancel it and get a full refund of premiums. Length varies by state, often 10 to 30 days.
Issued/Paid: Issued/paid is a status that means the carrier approved the policy, issued it, and received the first premium. Agents are usually credited for the sale and commission at this stage.
Not Taken (NTO): Not taken, or NTO, means a policy was approved and issued but the applicant did not accept it or pay for it. The carrier closes the case and usually pays no commission, or takes it back.
Beneficiary: A beneficiary is the person or organization the policy owner names to receive the death benefit when the insured person dies. A policy can name one or several beneficiaries and can split the payout by percentage.

All 241 terms

Why it matters

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