When is a firm required to provide policy documents to a new customer?

The requirement for firms to provide policy documents to new customers is centered on the principle of transparency and ensuring that customers have adequate information to make informed decisions. The correct answer emphasizes that policy documents must be provided "in good time," indicating that firms should deliver the documentation well ahead of the contract start date. This approach allows the customer to read and understand the policy terms and conditions, ensuring they are fully aware of their rights and obligations before they commit to the insurance.

Offering the documents well in advance supports the customer’s right to a clear understanding and consideration, which is particularly important in an industry where policies can be complex and varied. This timing is essential for building trust and providing a positive customer experience, as it empowers the customer to review and clarify any points they may not understand prior to activation.

Other options suggest either giving the documents at the point of sale or just before the contract starts, which may not afford enough time for thorough review. Providing documents only upon request does not fulfill the proactive responsibility firms have in ensuring customers are informed, which is a key aspect of regulatory requirements in insurance.