A receipt given for a premium payment accompanying the application for insurance. If the policy is approved, this binds the company to make the policy effective from the date of the receipt.
Once the initial payment has been made and while the pending life and health application for insurance is being investigated and either issued or rejected, a binding receipt is issued to verify receipt of payment and offer temporary coverage until final decision is made.
In insurance, a premium receipt which makes insurance coverage effective immediately but only until the insurance company either rejects the application or approves it and issues the policy.
The receipt for the first payment of the first premium which assures the applicant that, if he or she dies before receiving the policy, the company will pay the full claim if the policy is issued or would be issued as applied for upon receipt of the application.
A receipt given for the payment that accompanies an application for insurance. If the policy is approved, the payment "binds" the company to make the policy effective from the date of receipt.
See Conditional Binding Receipt.
A premium receipt acknowledging temporary insurance coverage immediately until the insurance company rejects the application or approves it and issues a policy. RETURN TO THE TOP
This is the more exact terminology for what is often called a binding receipt. It provides that if a premium accompanies an application, the coverage will be in force from the date of application or medical examination, if any, whichever is later, provided the insurer would have issued the coverage on the basis of the facts revealed on the application, medical examination and other usual sources of underwriting information. A Life and Health Insurance policy without a conditional binding receipt is not effective until it is delivered to the insured and the premium is paid. (LI,H)
The (evidence or) receipt given for a premium payment accompanying an application for insurance.
