Definition - What does Conditional Receipt mean?
A conditional receipt is a document given to someone who applies for an insurance contract and has provided the initial premium payment. 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.
Insuranceopedia explains Conditional Receipt
A conditional receipt is what an insurance company provides after a person submits his or her application for insurance and the first payment. This contract does not legally bind the company to cover the person, however. The person applying for insurance must prove that he or she is insurable by meeting certain requirements, such as passing a medical examination. Once the applicant has met those requirements, the insurance company will furnish a certificate of approval. This is the stage at which the company is ready to cover the person.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.