Which of the following statements is true about the conditional receipt issued to an applicant for an individual Disability Income policy?
A. coverage begins immediately as of the date of the conditional receipt.
B. An agent should give an applicant the conditional receipt after taking an application, even if the applicant has not been paid the premium.
C. If an applicant is an acceptable risk, the conditional receipt binds the insurance company as of either the date of the receipt or the date of the medical examination, whichever is later.
D. If unfavorable information is discovered during the underwriting process, the conditional receipt guarantees standard coverage.