What is an inspection receipt?

An inspection receipt is a document provided to an applicant for insurance, indicating that the policy is not yet in effect while allowing the applicant to review the terms and conditions of the policy. This document serves an important purpose within the insurance process, as it outlines that while the applicant may have applied and possibly paid a premium, the coverage has not yet been activated. It provides assurance that once the application is approved and any applicable conditions are met, the coverage would become effective.

This concept is crucial in the insurance industry, as it distinguishes between the periods of application and active policy coverage, allowing applicants to make informed decisions about their insurance needs before finalizing any agreements.