Floyd's agent issues him a conditional receipts with his application for life insurance. This means Floyd is covered on: The effective date specified on the application The date the policy is delivered to the insured The date of the application or the date of the medical exam, whichever is later The date the insurance company receives the first premium payment
Added by Mary T.
Step 1
A conditional receipt is issued when an applicant submits an application and the initial premium payment. It provides temporary coverage under certain conditions until the policy is either approved or declined. Show more…
Show all steps
Close
Your feedback will help us improve your experience
Aparna Shakti and 76 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Life insurance companies require applicants to submit to a physical examination as proof of insurability prior to issuing standard life insurance policies. In contrast, credit card companies offer their customers a type of insurance called "credit life insurance" that pays off the credit card balance if the cardholder dies. Would you expect insurance premiums to be higher (per dollar of death benefits) on standard life or credit life policies? Explain.
Nick J.
On Aug. 6, D submitted an application for a $50,000 life insurance policy and did not pay the initial premium. On Aug. 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on Aug. 20, and D explains what had recently taken place with the doctor. What action should the producer then take? a) Collect the initial premium. b) Collect the initial premium along with a signed health statement. c) Explain to the applicant that the policy is no longer in effect due to a change in health condition. d) Collect the initial premium and leave a binding receipt.
Abc insurance company has accepted a life insurance application which contains unanswered questions. the company then makes the application part of the life contract. in this situation, the insurer has
Haricharan G.
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD