Final answer:
The insurance company is typically responsible for ensuring that an insurance policy is delivered to the applicant. They face adverse selection challenges and use various strategies, including legislation like The Affordable Care Act, to manage the distribution and pricing of policies.
Step-by-step explanation:
If an applicant does not receive his or her insurance policy, the responsibility typically falls on the insurance company. This falls under the company’s duty to provide the policy documents to the insured after a contract has been agreed upon. In the context of health or life insurance, applicants may have more information about their risk levels than the insurance company can determine, leading to challenges like adverse selection. To manage this, the company might segregate buyers into different risk groups and adjust premiums accordingly. The insurer aims to collect premiums from those with lower risks to balance out the high costs from high-risk individuals. Legislation, such as The Patient Protection and Affordable Care Act, can affect these dynamics by mandating insurance purchases and preventing the denial of coverage due to preexisting conditions.