Binding Receipt Life Insurance

If you qualify for a binding receipt coverage under the binding receipt begins once the premium is paid and the binding receipt is issued. If the insured is deemed to be covered by the insurer the coverage begins on the date the insured receives the conditional binding receipt. Looking for information on conditional binding receipt.

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Conditional Binding Receipt

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A receipt given to an applicant for insurance confirming that the application has been signed and the first premium paid and stipulating that the insurance shall go into effect immediately if the risk proves to be acceptable irrespective of the date of delivery of the policy.

Binding receipt life insurance. Click to go to the 1 insurance dictionary on the web. Use of this type of receipt is rare in life insurancealthough binding is more common in property lines life personal auto insurance. Life insurance underwriting and policy issue 555 the binding receipt the binding receipt also states that the effective date of the policy is the date of receipt of the initial premium. Irmi offers the most exhaustive resource of definitions and other help to insurance professionals found anywhere.

However even if the insured dies without complete payment of the policy the company is still liable to provide some if not all of the benefits. A conditional binding receipt is involved in life health and certain property insurance contracts. With a binding receipt regardless of insurability the insured is covered for a specific period of time following completion of the application and the payment of the initial premium. If you do not qualify for a binding receipt coverage begins only when the life company approves your application for insurance and the premium is paid.

A binding receipt is a document given to the insured by the insurance company that is proof of coverage effective only if the initial premium is paid. However there is an additional twist. Proof of a temporary contract which forces a property insurance company to provide coverage provided that a premium is paid with the application. Called also binder conditional receipt.