When does coverage become effective if a conditional receipt is issued?

When a conditional receipt is issued, coverage becomes effective on the date of the application or the completion of any required medical exam, whichever is later. This aligns with the principle of conditional receipts, which provide temporary coverage while the insurance company assesses the risk and completes underwriting.

The purpose of a conditional receipt is to give applicants peace of mind that they have some coverage in place while the insurer evaluates their application. This coverage will only be in effect once the application is submitted and any necessary medical evaluations are fulfilled. If the medical exam is required, the coverage will not start until that is completed, even if the application was submitted beforehand.

This ensures that the insurer has all the necessary information to make a decision about the risk before the coverage actually takes effect, balancing the needs of both the applicant and the insurance provider. Therefore, the effective date of coverage during the conditional receipt process responsibly reflects this requirement.