Delivering a policy and collecting any outstanding premium is called:

Delivering a policy and collecting any outstanding premium is referred to as physical delivery. This term signifies the actual transfer of a policy document from the insurance company to the insured or policyholder, which is a crucial aspect of finalizing the insurance agreement. Alongside the policy delivery, collecting any outstanding premium is essential to ensure that coverage is in effect. This process confirms the mutual agreement between the insurer and the insured, allowing the coverage to formally begin.

In contrast, other methods of delivery, such as constructive delivery and conditional delivery, do not involve the actual transfer of policy documents or immediate receipt of premiums. Constructive delivery refers to situations where delivery is considered to have occurred through alternative methods, such as when a policyholder has control over the policy even if it's not physically handed to them. Conditional delivery may involve the insurer delivering the policy contingent upon certain conditions being met, such as receiving the first premium payment or completing additional underwriting requirements. Therefore, physical delivery accurately captures the idea of the policy being handed over with the associated premium collection.