What determines the need for a good health statement upon the delivery of an insurance policy?

The requirement for a good health statement upon the delivery of an insurance policy is primarily influenced by the initial premium submission status. If the applicant has not submitted the initial premium with their application, the insurer needs to confirm that the applicant is still in good health at the time the policy is delivered. This ensures that the risk still aligns with what was underwritten at the time of application.

When the initial premium is submitted along with the application, it's typically assumed that the applicant's health status has not changed, thus eliminating the need for an additional good health statement. Conversely, if the premium is not received at the time of application, there may be a greater risk that the applicant's health has deteriorated, which is why the insurer seeks confirmation of good health when finalizing the policy. This practice helps protect the insurer from potential losses due to changes in the applicant's health status that could occur from the time of the initial application to the policy delivery.