At what point does coverage begin when an agent issues a conditional receipt for a life insurance policy?

Coverage begins with a conditional receipt when either the application date or the medical examination date occurs, depending on which event happens last. This means that in situations where a policy is underwritten based on a person's health conditions and lifestyle, the insurer offers a preliminary level of coverage as long as certain conditions are met, including the satisfactory review of the application and, if applicable, the medical examination results.

For example, if a person submits an application on January 1 and a medical examination is conducted on January 5, coverage would officially commence on January 5 because that is the later date. Conversely, if the medical examination does not take place until January 10, then coverage begins on that date, assuming all conditions specified in the conditional receipt are satisfied.

This system ensures that the insurer can assess the risk adequately while also providing some degree of coverage to the applicant during the underwriting period. It allows for flexibility in coverage start dates based on the completion of the necessary steps leading to the approval of a life insurance policy.