Illinois Insurance State Practice Exam

Which document must be delivered to the consumer before the policy is active?

1. Application Form

2. Policy Summary

3. Buyer's Guide

4. Claim Form

The correct answer is: Buyer's Guide

The correct choice, the Buyer's Guide, must be delivered to the consumer before the policy becomes active. This document is a crucial part of the insurance purchasing process because it provides essential information about the different types of insurance products available, the benefits and limitations of those products, and comparisons to help consumers make informed decisions. The purpose of the Buyer's Guide is to ensure that consumers are adequately informed about what they are purchasing before they commit to a policy. Providing this guide allows consumers to understand the specifics of the insurance they are considering, which aligns with regulatory requirements designed to promote transparency and consumer protection in the insurance industry. While the application form, policy summary, and claim form are important components of the insurance process, they do not hold the same pre-activation significance as the Buyer's Guide. The application form is part of the information gathered from the consumer to assess risk, the policy summary provides an overview of the terms and conditions post-activation, and the claim form is needed during the claims process after the policy is in effect.