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Web Content Viewer (JSR 286)

Policy Delivery - Life Insurance

Face-to-Face Delivery

It is critical to promptly deliver all policies and contracts to clients. Prompt delivery helps:

  • Initiate the timing of the free-look period
  • Ensure client receives quality service
  • Build relationships between producer and clients
  • Obtain high quality referrals
  • Enhance the producer's professional image
  • Improve persistency

Examination Offer

The examination offer is a standard provision in all current contracts. It entitles the owner to a refund if he or she requests cancellation within ten days of the date the contract is delivered.

The examination offer on such requests starts not when the policy is mailed from the home office nor when it is received by the producer, but when the owner actually receives it. Therefore, it is essential that the policy be delivered promptly and a delivery receipt secured.

If Producer... Possible Outcomes... Then...
Delays delivery
  • Violation of company policy
  • Free look period does not begin until delivery to client
  • Policy or Contract may be made not taken, resulting in reversed commissions
  • Loss of goodwill and referrals
  • Client complaint
  • Harm to reputation (producer's and company's)
  • Business Conduct review
  • Sanctions against producer
Agency management must:
  • Deliver policy/contract
  • Obtained signed delivery receipt
  • Advise client of free look period
  • Counsel producer on company delivery policies and ensure all are promptly delivered
Does not obtain signed delivery receipt
  • Violation of company policy
  • Free look period may not begin until signed by owner
  • Policy or contract may be made not taken, resulting in reversed commissions
  • Loss of goodwill and referrals
  • Client complaint
  • Errors and Omissions Claim
  • Harm to reputation
  • Business Conduct review
  • Sanctions against producer
Agency management must:
  • Deliver policy/contract
  • Obtained signed delivery receipt
  • Advise client of free look period
  • Counsel producer on company delivery policies and ensure all are promptly delivered
Accepts or requests from client, or submits, delivery receipt signed by someone other than owner
  • Violation of company policy
  • Violation of confidentiality or privacy
  • Void delivery receipt
  • New free look period may be required
  • Commission reversal
  • Client complaint
  • Business Conduct review
  • Jeopardize contract with Principal Life
  • Sanctions against producer
Agency management:
  • Assists home office with Business Conduct
  • Delivers policy/contract
  • Obtains signed delivery receipt
  • Advises client of free look period
  • Reviews any actions taken with producer
Miscommunicates medical information
  • Violation of privacy or confidentiality laws
  • Client complaint
  • Business Conduct Review
  • Jeopardize contract with Principal Life
  • Sanctions against producer
Agency management:
  • Application may be declined
  • Deliver policy/contract
  • Obtain signed delivery receipt
  • Advises client of free look period
  • Assists home office with Business Conduct review and any actions taken with producer
Keeps Possession of Policy or Contract
  • Violation of company delivery requirements
  • Violation of state regulations
  • Void delivery receipt
  • New free look period may be required
  • Commission reversal
  • Client complaint
  • Errors and Omissions Claim
  • Jeopardize contract with Principal Life
  • Business Conduct review
  • Sanctions against producer
Agency management:
  • Delivers policy/contract
  • Obtains signed delivery receipt
  • Advises client of free look period
  • Assists home office with Business Conduct review and any actions taken with producer
Opens Personal and Confidential letter prior to delivery to client
  • Violation of company policy
  • Violation of privacy or confidentiality laws
  • Client complaint
  • Business Conduct Review
  • Jeopardize contract with Principal Life
  • Sanctions against producer
Agency management:
  • Notifies Business Conduct and Underwriter
  • Assists home office with Business Conduct review and any actions taken with producer
  • Assists home office with any action taken with client
Does not deliver Buyer's Guide
  • Violation of state regulation
  • Violation of company policy
  • Client complaint
  • Business Conduct Review
  • Jeopardize contract with Principal Life
  • Sanctions against producer
Agency management must:
  • Deliver policy/contract and Buyer's Guide
  • Obtained signed delivery receipt
  • Advise client of free look period
  • Assist home office with Business Conduct review and any actions taken regarding producer

Delivery by Mail

Applications which were taken by mail might result in having to deliver the policy or contract issued by mail. The producer must:

  1. Comply with all company guidelines and policies and state requirements for policy/contract delivery, if state allows for delivery by mail.
  2. Call the client as soon as possible after receiving the policy/contract.
  3. Review with the client the policy/contract, delivery receipt, amendment forms and riders.
  4. Mail the policy/contract and other required forms to the client.
  5. Follow up regularly to ensure delivery receipt, signed Part D and any other delivery requirements are promptly signed and returned.

Comply with additional requirements:

For questions, contact:

  • Life Insurance: Your Client Administration Underwriter
  • Annuities: Annuity Call Center: 515.248.0000
  • Disability Insurance: Your Disability Income Services Underwriter

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