TIAs - SWL

Temporary Insurance Agreements (TIA)

There is normally a time lag between the date of application and the issuance of an insurance policy.

In most cases, coverage is not in force until the actual policy is delivered to the client

Q: What happens if you die in the meantime? Will she be covered?

A: Depends on whether you were given a TIA.

TIA provides interim coverage while the main policy is being underwritten
Generally capped @ a MAXimum (ex. $200K), regardless of the amount of coverage that is actually being applied for

Under what circumstances should you give a client a TIA?

the moment you give a client a TIA you are exposing the insurance company to some RISK
IF the applicant dies, the insurance company is potentially paying a claim

When it is a “nice clean application”
- ex. there are NO red flags; the client has answered “no” to certain q’s
  Have you ever had cancer?
The agent has no reason to question/disbelieve the client
- ex. if the info is taken @ '“face value” the agent believes the the application would likely be approved
Client has paid the 1st premium

How long is a TIA valid for?

Until the earlier of: