Policy Issuance refers to the process of formally providing an insurance policy to a policyholder after they have applied and met the necessary requirements. This document outlines the terms, coverage, and conditions of the insurance agreement, ensuring that both the insurer and the insured understand their rights and responsibilities. Once the insurance company reviews the application and accepts the risk, they generate the policy document. This document serves as proof of coverage and includes important details such as the premium, deductibles, and any exclusions. Proper issuance is crucial for effective risk management and customer satisfaction.