What type of receipt provides that coverage is actionable as of the date the application is approved?

The approval receipt is a specific type of document that indicates coverage begins on the date the insurance application is approved, assuming all required conditions have been satisfied. This means that once the insurer reviews the application and decides to accept it, the coverage is considered legally effective from that approval date.

This contrasts with other types of receipts. For instance, a conditional receipt typically grants temporary coverage but only under certain conditions, such as completing the medical exam or meeting other underwriting criteria. A standard receipt may not establish any immediate coverage and often simply acknowledges receipt of the application and premium payment without specifying when coverage begins. A final receipt usually indicates that all procedures have been completed and serves as confirmation of permanent insurance coverage following the approval process.

Therefore, the approval receipt's defining characteristic is its stipulation that coverage is granted starting from the moment of application approval, which is essential for clients to understand their coverage effectively.