Answer:
Premium Receipt
Explanation:
A life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.
A premium can be defined as an amount of money that an applicant must pay to an insurer (insurance company) for an insurance policy.
An insurance policy becomes effective when the insurer (insurance company) delivers a policy and a premium is paid by the policyholder (insured).
However, most insurance agents try to collect an initial premium from the potential policyholder (applicant), for submission with the application to an insurer (insurance company). When an initial premium is collected from the applicant by his or her agent, it's important and necessary that the agent issue a premium receipt to the applicant.
Typically, a coverage will begin when the policy is delivered by an agent, collects an initial premium, and an acceptable Statement of Good Health is contractually completed (signed) by the applicant.
