How does a conditional premium receipt differ from a binder?

A conditional premium receipt serves as a temporary evidence of insurance coverage that is contingent upon certain conditions being met, primarily the applicant's health status and employment. This is fundamentally different from a binder, which can provide immediate coverage without waiting for the completion of underwriting processes.

When an applicant receives a conditional premium receipt, the insurance company commits to providing coverage only if the applicant meets specific health criteria, as indicated on the application form. If the applicant is deemed insurable after further assessment, coverage becomes effective as per the terms outlined in the receipt. Therefore, the correct statement captures the essence of how a conditional premium receipt links the applicant's health conditions to the policy's viability.

In contrast, a binder typically does not depend on these factors and provides immediate but temporary coverage as a contractual agreement until the formal policy is issued. This distinction emphasizes the conditional nature of the receipt in relation to the applicant's health and occupation, making option C the accurate choice.