Conditional Binding Receipt
 |
Definition of 'Conditional Binding Receipt'A receipt involved in life, health and certain property insurance contracts; if the insured is deemed to be covered by the insurer, the coverage begins on the date the insured receives the conditional binding receipt. Typically, a premium payment must be received by the insurer along with a completed acceptable application in order for the insured to obtain the receipt.This may also be called a "conditional receipt" or a "binding receipt" depending on the type of insurance. |
 |
Investopedia explains 'Conditional Binding Receipt'As long as the insured is going to receive the policy anyway, the insurer is obliged to cover a claim should one occur between the time the application is received and the time the policy is officially in place.If however, the insured is denied coverage as the typical underwriting process progresses, the insurer could nullify the conditional binding receipt, even if a premium was collected. |
Related Definitions
Articles Of Interest
-
Top 10 Life Insurance Myths
The most difficult aspect of this complex product is determining how much coverage you need and why. -
The Importance Of Property Insurance
Property insurance is important, but there's a lot you need to learn in order to get the proper coverage. -
Services That Health Insurers Often Decline
Learning how to navigate health insurance pitfalls will make you a more educated healthcare consumer. -
5 Life Insurance Questions You Should Ask
Confused about $1 million dollar insurance advertising claims? Decide whether they'll pay off for you. -
Get Sale Prices On Healthcare With Discount Plans
Medical discount plans can help the uninsured or underinsured afford better healthcare. -
Retirement: The One Thing Couples Shouldn't Do Together
Staggering retirement can have both financial and emotional benefits for married couples. -
Top 5 Budgeting Questions Answered
You don't need a degree to understand your money, begin saving and pay down debt. -
Investing In Medical Equipment Companies
Learn the basics about medical equipment companies and how investing in them can benefit growth and value investors alike. -
Tax Variations Of The HEART Act
The HEART Act is designed to allow service members and reservists make a smooth financial transition into active duty and back into civilian life. -
8 Qualities That Make A Good Insurance Agent
Insurance agents must possess each of the following qualities in order to be successful.
Free Annual Reports
