Conditional Receipt

A conditional receipt is a document issued by an insurance company or agent when a life insurance application is submitted along with the first premium payment. It provides interim coverage — contingent on the applicant being found insurable during underwriting — from the date of application or the date of a required medical exam, whichever is later. If the applicant dies before the policy is formally issued, the carrier will pay the death benefit only if underwriting would have approved the application. If the applicant would have been declined, the premium is refunded. Not all carriers issue conditional receipts; some issue binding receipts that provide unconditional interim coverage.