A binding receipt is a document issued by an insurance company that confirms the receipt of a premium payment and binds the company to provide coverage for the policyholder. This article will explore the definition and meaning of binding receipt, its origin, associations, synonyms, antonyms, and example sentences.
Definitions
A binding receipt is a written acknowledgment by an insurance company that a premium payment has been received and coverage is in effect. The receipt is binding on the insurance company, even if the policy has not yet been issued.
Origin
The concept of a binding receipt dates back to the early days of insurance. It was created to provide a way for policyholders to obtain coverage immediately, even before the policy was issued. This was particularly important in cases where the policyholder needed coverage urgently, such as in the case of a medical emergency.
Meaning in different dictionaries
According to the Oxford English Dictionary, a binding receipt is “a document issued by an insurance company as evidence of receipt of a premium payment and binding the company to provide coverage for the policyholder.”
Merriam-Webster defines a binding receipt as “a receipt issued by an insurance company acknowledging receipt of premium and binding the company to provide coverage.”
Associations
A binding receipt is closely associated with the insurance industry, particularly with life insurance and health insurance policies. It is also used in other types of insurance, such as property and casualty insurance.
Synonyms
Synonyms for binding receipt include:
- Insurance receipt.
- Premium receipt.
- Policy receipt.
- Coverage receipt.
Antonyms
There are no direct antonyms for binding receipt, as it is a specific term used in the insurance industry.
The same root words
The root words in binding receipt are “binding” and “receipt.” “Binding” refers to something that is legally or morally binding, while “receipt” refers to a document that acknowledges the receipt of something.
Example Sentences
- The insurance company issued a binding receipt to the policyholder, confirming that coverage was in effect.
- The binding receipt was proof that the premium payment had been received and that the policy was in force.
- Without a binding receipt, the policyholder would not have been able to obtain coverage for the medical procedure.
- The insurance agent explained the concept of a binding receipt to the policyholder, emphasizing its importance in obtaining immediate coverage.