What is a conditional receipt and what effect does it have on coverage?

What is a conditional receipt and what effect does it have on coverage?

• A. A receipt guaranteeing immediate coverage regardless of underwriting
• B. A receipt stating that coverage may be in force for a specified amount if underwriting approves and the policy is issued, subject to terms
• C. A notice that coverage starts only after the policy is issued
• D. A document used to cancel the policy

Answer: (B)