What document typically accompanies an application when a premium is collected?

The correct answer is that a conditional receipt typically accompanies an application when a premium is collected. A conditional receipt is a document issued to the applicant by the insurance company at the time of application, usually when the initial premium is submitted. This receipt provides temporary coverage to the applicant, contingent upon certain conditions being met, such as the applicant being insurable under the insurer's underwriting guidelines.

This is important because it gives applicants peace of mind, assuring them that they may have immediate, though conditional, coverage while their application is being processed. The exact terms and conditions of the coverage provided by the conditional receipt are specified within the document itself, which generally clarifies that if the application is ultimately approved, the insurance policy will be issued retroactively from the date of the conditional receipt.

In contrast, the other documents mentioned serve different purposes. A policy summary provides an overview of the policy's features, benefits, and costs but is not connected with the immediate coverage upon application. A coverage outline is used to summarize the policy details and is typically provided after the application phase. A disclosure form is required by law in many jurisdictions to ensure that applicants receive all necessary information regarding the policy terms and potential limitations but is not tied to the provision of temporary coverage.