What type of agreement provides coverage from the application date regardless of insurability?

A binding receipt is a type of agreement that guarantees coverage from the date the applicant submits their application, without requiring further review of insurability at that moment. This means that as soon as the premium is paid along with the application, the insurance company is obligated to provide coverage, effectively treating the application as if it has been approved, regardless of the applicant's health status or any other underwriting criteria that would typically be evaluated later.

This type of receipt is particularly beneficial for individuals who may have health concerns or other factors that could affect their insurability, as they receive immediate protection. It's important to note that if the applicant does not ultimately qualify for the policy, the insurer may still refund the premium, but the coverage is in effect immediately upon acceptance of the binding receipt.

Other receipt types, such as conditional or provisional receipts, typically involve conditions that must be met regarding the applicant's health or may only provide coverage once certain stipulations are fulfilled. This differentiates them from a binding receipt, which provides that immediate assurance of coverage.