What condition must be met for a conditional receipt to effectively activate a policy?

A conditional receipt is a document issued by an insurer that provides temporary coverage to a prospective policyholder. For the conditional receipt to effectively activate the policy, it is essential that the applicant meets specific underwriting conditions set by the insurer. This implies that the insurance company, upon receiving the application and premium, will conduct a review of the information provided to approve the risk.

If the applicant fulfills the necessary underwriting criteria, such as health assessments or other risk factors, the coverage becomes effective even before the formal issuance of the policy. This allows applicants peace of mind and immediate protection during the underwriting process. Thus, the requirement to meet specific underwriting conditions is key to validating the conditional receipt and activating the insurance coverage.

In contrast, the other options pertain to various processes or documents that might play a role in the overall underwriting process but do not directly affect the activation of a policy through a conditional receipt.