If a premium accompanies an application, a conditional binding receipt provides that coverage will be in force from the date of application or medical examination, so long as 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. Understanding Conditional Binding Receipts The function of a conditional binding receipt can actually be divided into two separate receipts: a conditional receipt and a binding receipt.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.If the insured is deemed to be covered by the insurer, the coverage begins on the date the insured receives the conditional binding receipt.A conditional binding receipt is involved in life, health, and certain property insurance contracts.
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