Which of the following gives a temporary protection to the insured while the policy is being drawn up?
Answer Details
A cover note gives temporary protection to the insured while the policy is being drawn up. A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage for a specified period until a formal insurance policy can be issued. It is usually issued when an insurance policy is being prepared or renewed, and the insured needs immediate coverage before the policy is issued. The cover note specifies the terms of the insurance coverage, such as the type of coverage, the limits, and the premium. Once the policy is issued, the cover note is no longer valid.