K receives a receipt stating coverage begins immediately if the application is approved. What type of receipt was used?

The situation described indicates that K received a receipt which specifies that coverage begins immediately upon approval of the application. This aligns with the definition of a conditional receipt, which is issued by an insurer when an applicant submits an application for insurance along with the initial premium. The coverage is contingent upon the acceptance of the application by the insurer.

In this case, the key aspect is that the coverage becomes effective immediately if the insurer later approves the application. This makes it conditional because the effectiveness of the coverage relies on the underwriting decision of the insurance company. If the company ultimately decides to reject the application, then the coverage would not go into effect.

While binding receipts can provide immediate coverage without conditions, the description here suggests that there is a requirement for the application to be approved first. Therefore, since the receipt mentioned specifically requires approval for coverage to take effect, it classifies it as a conditional receipt.