Final answer:
A signed good health statement is necessary upon policy delivery to assess the risk of insuring an individual and determine appropriate premiums and coverage.
Step-by-step explanation:
When an insurance policy is delivered, the applicant is asked to provide a signed good health statement. This is necessary because insurance companies need to assess the risk of insuring an individual. By obtaining a good health statement, the insurer can gather information about the applicant's current health condition and any pre-existing conditions that may affect their insurability.
The signed good health statement acts as a confirmation from the applicant that they are in good health at the time of policy delivery. It helps the insurer determine the appropriate premiums and coverage for the policy, taking into account any potential risks associated with the applicant's health.
For example, if an applicant has a known medical condition or engages in high-risk activities, the insurance company may adjust the policy terms to reflect these factors.