If a premium is not paid at the time of application, what will the producer issue?

When a premium is not paid at the time of application, the producer issues a conditional receipt. This conditional receipt serves as proof of payment and indicates that coverage may be effective, contingent on certain conditions being met, such as the applicant being found insurable based on the insurer's underwriting standards.

The conditional receipt assures the applicant that, should the insurance company approve the application and the applicant meets the underwriting criteria, the coverage will be retroactively effective to the date of application, provided that the premium is paid. This process protects the applicant in case of an unexpected event leading to a claim during the underwriting period.

In contrast to other options, a temporary policy is typically issued only when a premium is collected at the time of application. A cancellation notice would be used when a policy is being terminated, while an endorsement refers to an amendment or addition to an existing policy rather than an action taken at the point of application.