When is a premium receipt given for an accident and health insurance application?

A premium receipt for an accident and health insurance application is issued when the initial premium has been collected with the application. This practice is significant in insurance underwriting because it signifies that the applicant has made a financial commitment to securing coverage and acknowledges that the insurance company has received the payment.

The premium receipt serves as proof that the insurance application has been initiated and funds have been exchanged, even if the policy is still subject to underwriting approval. This allows the applicant to gain temporary coverage, which may be beneficial in the event of a claim before the formal underwriting process is completed.

In other contexts, a premium receipt is not typically issued upon final policy approval, as this receipt indicates the initial transaction rather than the completion of the underwriting process. Additionally, a receipt is not provided just after the application is reviewed, as the key step of collecting the initial premium precedes even the review. Providing a receipt after 30 days of application submission would likely be impractical, as immediate recognition of the transaction is standard practice in the industry.