With a conditional life insurance receipt, when does coverage start?

The correct answer indicates that coverage begins when the applicant is approved for coverage as a standard risk after receiving a conditional life insurance receipt. This type of receipt implies that the insurer has reviewed the initial application and has agreed to issue the policy, pending final underwriting and approval based on the applicant’s health and risk assessment.

This situation reflects the conditional nature of the receipt—while the applicant has some assurance of coverage if deemed insurable, the policy is not fully active until underwriting is complete. The approval of the applicant as a standard risk is crucial because it confirms the insurance company's agreement to provide coverage based on the information given in the application.

In contrast, simply receiving the receipt without that approval does not guarantee coverage; hence, other options lack the necessary criteria that lead to an active coverage start date. The delivery of the policy itself means coverage has been formally accepted, but coverage for a conditional receipt specifically starts with the underwriting approval.