What is the purpose of a conditional receipt?

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What is the purpose of a conditional receipt?

A. It is given by the agent only to applicants who fully prepay all scheduled premiums in advance of policy issue.

B. It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

C. It guarantees the applicant that a policy will be issued in the amount applied for in the application.

D. It serves as proof that the agent has determined the applicant to be fully insurable for coverage by the insurance company.

Answer: B. It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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