What item is given to an applicant for life insurance if the insurer is bound to the coverage as of the date of their application or medical examination?

A conditional receipt is issued to an applicant for life insurance when the insurer agrees to provide coverage starting from the date of the application or medical examination, under specific conditions. This document typically states that the coverage takes effect immediately, as long as the applicant is found to be insurable based on the insurer's underwriting guidelines.

The conditional receipt signifies that the insurer has taken the first step toward underwriting the policy and acknowledges the potential for coverage, pending final approval. It creates an early form of contract between the applicant and the insurer, offering reassurance that coverage may already be in effect while the application is still being processed.