Which type of conditional receipt is issued when a premium and application are collected?

The correct answer is Insurability Receipt, which is a type of conditional receipt issued when both the premium and the application for insurance coverage are collected from the applicant. This receipt provides temporary coverage to the applicant based on their statement of insurability at the time of application. It indicates that if the insurer determines the applicant is insurable according to their underwriting guidelines, the coverage will be in effect from the date of the application, assuming premium payment was made.

In contrast, other types of receipts serve different purposes or conditions. A Temporary Protection Receipt, for example, may provide coverage for a limited time frame but doesn’t necessarily require the prior payment of the premium. An Approval Receipt would typically indicate that the application is still under review and doesn't grant immediate coverage. A Conditional Payment Receipt emphasizes that coverage is contingent upon certain conditions being met after payment but without the clear context of insurability stated in the Insurability Receipt.

Understanding the distinctions among these receipts is crucial, as they each fulfill different roles in the insurance application process and can affect the timing and status of coverage for an applicant.