Conditional Receipt

Conditional Receipt A conditional receipt is a document issued by an insurance company to an applicant for insurance after the applicant has submitted an application and paid the first premium. The conditional receipt does not legally bind the insurance company to cover the applicant, but it does provide some coverage during the time that the application is being processed. If a policy owner pays a premium at the time of insurance application, she will receive a conditional receipt. With this receipt, the insured receives interim coverage during the underwriting process. This is subject to the terms and conditions of the receipt. This receipt means that the person can only be insured if he or she meets the standards of insurability and is given approval by the insurance company. The conditional receipt is typically valid for a period of 30 to 60 days. During this time, the insurance company will review and make necessary investigations, financial information, and other factors to determine whether to issue the policy. If the insurance company approves the policy, the applicant will be issued a certificate of insurance. A conditional receipt is used to provide insurance should the insured die before the policy is issuedIf during this time, the applicant for example a life insurance contract dies, the company will pay a death benefit as if the policy would have been issued. Note that with onditional receipt, -The applicant is not legally guaranteed coverage. -The insurance company may still deny the policy after the conditional period has expired. -The applicant may have to pay additional premiums if the policy is approved. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful