This receipt does not bind the coverage of life insurance at the time it is issued, but it does put the coverage into effect retroactive to the time of application if one meets all the requirements for insurability as of the date of the application.A claim for benefits because of death prior to issuance of the policy generally will be honored, but only if you were insurable when you applied.Identify this receipt.
A)Conditional receipt
B)Binding receipt
C)Estoppel
D)Facultative receipt
E)Waiver receipt

Question

Quizplus · Accepted Answer

A Conditional receipt is given to policy applicants when they pay a premium at the time of application. It provides that coverage will be effective from the date of the application or medical exam (whichever is later), provided that the policy is eventually issued as applied for. This means if the applicant meets the insurer's underwriting requirements, the coverage can be retroactively effective, even if the applicant dies before the policy is formally issued.

This Receipt Does Not Bind the Coverage of Life Insurance