What happens if an insurance policy is not delivered to a client?

When an insurance policy is not delivered to a client, the policy is considered not in force until delivery occurs. This means that the coverage provided by the policy does not activate until the client has received the actual policy document and acknowledged its terms. This principle is based on the understanding that the policyholder must be aware of and accept the conditions of the insurance coverage before it can be effective.

In many jurisdictions, including Georgia, delivery of the policy is a critical step in the binding nature of the insurance contract. The purpose of this requirement is to ensure that the policyholder has the opportunity to review the policy details, including coverage limits, benefits, and exclusions. Without delivery, the insurer cannot enforce the terms of the contract, and the policyholder does not have any rights or obligations under that insurance policy.

Other options imply immediate activation, financial loss, or cancellation, which do not comply with the established norms regarding policy delivery and activation. Thus, the only accurate depiction of the situation is that the policy remains inactive until it has been formally delivered to the policyholder.