Binding receipt

A receipt given by a company upon a policy applicant’s first premium payment. The policy, if approved as applied for, is effective from the date of receipt.
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US: A receipt given for a premium payment accompanying the application for insurance. If the policy is approved, this binds the company to make the policy effective from the date of the receipt.
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MEDICAL,USA,REFERENCE: See: temporary insurance agreement (TIA) .

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