Under what condition will an insured be covered under a policy?

An insured will be covered under a policy when it is delivered and a conditional receipt is provided. This means that coverage can start even before the actual policy is issued, as long as certain conditions are met as outlined in the conditional receipt.

The conditional receipt usually indicates that the insured is entitled to coverage as of the date of the application, provided that the application is approved and the required premium payment is made. This practice allows for immediate coverage, which can be essential if the insured needs protection right away.

Delivering the policy and providing a conditional receipt creates a legally binding obligation for the insurer, assuming all conditions listed in the receipt are fulfilled. It emphasizes the importance of both the delivery of the policy and the acknowledgment of receipt, which formally activates the coverage.