A conditional receipt is proof of application-stage coverage, usually effective before final underwriting approval.
The coverage is typically conditional on facts like premium payment, medical underwriting, and the applicant satisfying health or risk disclosures.
How it works
The receipt can protect a lapse in protection between application and policy issuance. Because it is conditional, claim payment still depends on whether underwriting standards are met before or at the effective date.
Practical use
Without a conditional receipt, a loss between application and binding decision may have no coverage even if the applicant later gets approved. With one, the loss is reviewed under the specific conditional terms that apply before formal policy issue.