Definitions for "Conditional Binding Receipt"
This is also referred to as a binding receipt. This means that if a new applicant for an insurance policy includes their premium with their application, the start date of their coverage begins on the date the application was filled out, or the date of their medical examination, if they are approved.
A receipt given for a premium payment accompanying the application for life insurance. This binds the company if the applicant is insurable to make the policy effective from the date of receipt. If you die while your application is being processed, a claim for the death benefit will be paid only if you are insurable.
This is the more exact terminology for what is often called a binding receipt. It provides that if a premium accompanies an application, the coverage will be in force from the date of application or medical examination, if any, whichever is later, provided the insurer would have issued the coverage on the basis of the facts revealed on the application, medical examination and other usual sources of underwriting information. A Life and Health Insurance policy without a conditional binding receipt is not effective until it is delivered to the insured and the premium is paid.