Health and Life Insurance

Category - Annuities & Policies

If Kristie wants immediate coverage with her application contingent on the outcome of the underwriting and pays the first full premium payment, what will the insurance provider give her?
  1. Temporary receipt
  2. Binding receipt
  3. Conditional receipt
  4. Inspection receipt
Explanation
Answer: C - The insurance provider will provide Kristie with a conditional receipt. A conditional receipt means Kristie is covered immediately. If Kristie dies prior to the policy being issued, either the proceeds would be paid to the beneficiary if the company would have issued the policy, or the premium would be returned to the beneficiary if the policy would not have been issued.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz