Question

At what point must an Outline of Coverage be delivered?

1) At any point up to 30 days after policy delivery
2) At the time of application only
3) Upon delivery of the policy only
4) At the time of application or upon delivery of the policy

Answer 1

The Outline of Coverage must be delivered either at the time of application or upon delivery of the policy, in order to inform policyholders about the coverage and benefits in detail.

Step-by-step explanation:

An Outline of Coverage must be delivered at the time of application or upon delivery of the policy. This is essential because it gives policyholders a clear and concise summary of their coverage, benefits, and key terms before the final purchase decision is made. In insurance, different instances may trigger benefits such as when medical expenses are incurred, the policyholder dies, a car is damaged, stolen, or causes damage to others, or a dwelling is damaged or burglarized. For the proper education and protection of the buyer, the Outline of Coverage acts as a foundational document.