Definition of "Conditional Receipt"
A receipt given for premium payment accompanying an application for insurance. If the application is approved as applied for, the coverage is effective as of the date of prepayment or the date on which the last of the underwriting requirements, such as medical examination, has been fulfilled.
In life and health insurance, evidence of a temporary contract obligating an insurer to provide coverage as long as the premium payment accompanies the application. This allows the insurance company time to review and process the policy, and to issue or refuse coverage accordingly.