If an applicant receives a conditional receipt and the application is later rejected, what is the outcome?

When an applicant receives a conditional receipt, it signifies that the insurance company will provide coverage as of the date of the application, provided that the application is ultimately approved. However, if the application is subsequently rejected, the insurance company is not obligated to provide coverage, as the terms of the conditional receipt specify that coverage is contingent upon acceptance of the application.

In this scenario, since the application was rejected, there would be no coverage in place. This outcome emphasizes the importance of the application process in determining whether an individual is eligible for the insurance policy described in the original application. The conditional receipt does not guarantee coverage; it merely indicates that coverage may begin if all underwriting criteria are met. Hence, the appropriate conclusion in this situation is that there would be no coverage at all.