Arkansas Life and Health Insurance Practice Exam

To ensure that an insurance policy takes effect upon delivery, it is essential that the application is collected along with the premium. The application is a crucial document that contains important information about the insured individual and helps the insurance company assess the risk involved in providing coverage. By collecting the application along with the premium, the insurance company can process the policy effectively and make it active once delivered. Options B, C, and D are incorrect: - An Attending Physician's Statement (Option B) is a document that provides details about an applicant's medical history, typically obtained to assess an individual's health condition. While this information may be necessary for underwriting purposes, it is not typically required at the time of policy delivery. - A Conditional Receipt (Option C) is a document that is sometimes provided to the applicant when they submit an application and premium. It serves as temporary evidence of coverage until the policy is issued. However, it is not required for the policy to take effect upon delivery. - A Statement of Good Health (Option D) is a declaration by the insured individual regarding their current health status. While this may be necessary in certain situations, it is not typically required to activate the policy upon delivery.