What must an agent provide to a life insurance applicant upon receiving the application and initial premium?

When an agent receives a life insurance application along with the initial premium, it is essential to provide the applicant with a conditional receipt. This receipt serves as proof that the application has been submitted and the initial premium has been received. It also outlines the conditions under which the insurance coverage may become effective. Essentially, the conditional receipt indicates that if the applicant meets certain requirements, the coverage will begin, despite the policy not yet being formally issued.

Many applicants appreciate understanding that their coverage is contingent upon satisfying the underwriting criteria outlined in the receipt. This process helps to clarify the next steps in the application process and provides the applicant with confidence that they have taken an important step toward securing their life insurance coverage. In contrast, the other options either do not serve the purpose of confirming coverage after application and premium submission or are not standard practices associated with the initial application process.