Which document confirms premium payment to the insurer?

Which document confirms premium payment to the insurer?

• A. Premium Receipt
• B. Conditional Receipt
• C. Application
• D. Field Underwriter

Answer: (A)

When premium is paid, the insurer issues a premium receipt to confirm payment. This receipt is the formal acknowledgement that the insurer has received the money, and it serves as proof of payment. Depending on the policy terms, it can also indicate the date from which coverage starts or becomes effective, especially if the payment is received before the policy is issued. A conditional receipt is different: it’s provided when payment is made with the application and may authorize temporary coverage while underwriting is completed. The application is simply the form used to request coverage, and a field underwriter is a person who reviews applications, not a document.

When premium is paid, the insurer issues a premium receipt to confirm payment. This receipt is the formal acknowledgement that the insurer has received the money, and it serves as proof of payment. Depending on the policy terms, it can also indicate the date from which coverage starts or becomes effective, especially if the payment is received before the policy is issued. A conditional receipt is different: it’s provided when payment is made with the application and may authorize temporary coverage while underwriting is completed. The application is simply the form used to request coverage, and a field underwriter is a person who reviews applications, not a document.