In insurance terminology, what does the term 'delivery of policy' refer to?

The term 'delivery of policy' specifically refers to the physical handing over of the policy document to the insured. This act signifies that the insurer has fulfilled its obligation to provide the official documentation of the insurance coverage that has been agreed upon. It is an important step in the insurance process, as the delivery of the policy enables the policyholder to formally receive their coverage and understand the terms and conditions related to their insurance.

This process is crucial because it represents the finalization of the contract between the insurer and the insured. Upon receiving the policy document, the insured is also expected to review the details to ensure they align with what was agreed upon during the coverage discussions. The delivery of the policy can sometimes lead to the initial premium payment, but the act itself primarily focuses on the physical transfer of the policy document.