What type of receipt holds the insurer liable for risks from the date of the application?

A binding receipt is a type of receipt that holds the insurer liable for risks from the date of the application. This means that once the applicant pays the premium and receives a binding receipt, the insurance coverage is in effect immediately, even if the insurer has not yet formally approved the application. This type of receipt provides assurance to the policyholder that they are protected from the moment they submit their application and payment, which is particularly important for individuals seeking immediate insurance coverage.

In contrast, a conditional receipt typically makes the insurance coverage contingent upon the insurer's approval of the application, meaning that coverage would not begin until the application has been reviewed and accepted by the insurer. A temporary receipt often serves a similar purpose as the conditional receipt but may have specific terms outlined, such as limited coverage or time frames. A standard receipt usually does not imply immediate coverage and serves simply as proof of payment without designating when coverage actually begins. Thus, the binding receipt distinctly establishes the insurer's liability from the application date, which is what sets it apart from the other types of receipts listed.