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What Is A Cover Note

A cover note is a temporary document issued by an insurer that provides proof of insurance coverage until a final policy is issued, and features the insured's name, insurer, coverage, and what is covered. It allows evaluation of risks while providing the same coverage as the future policy, and remains valid until policy documentation is received or an extension is given.

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244 views2 pages

What Is A Cover Note

A cover note is a temporary document issued by an insurer that provides proof of insurance coverage until a final policy is issued, and features the insured's name, insurer, coverage, and what is covered. It allows evaluation of risks while providing the same coverage as the future policy, and remains valid until policy documentation is received or an extension is given.

Uploaded by

NRB
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What Is a Cover Note?

A cover note is a temporary document issued by an insurance company that


provides proof of insurance coverage until a final insurance policy can be
issued. A cover note is different from a certificate of insurance or an
insurance policy document. A cover note features the name of the insured,
the insurer, the coverage, and what is being covered by the insurance.The
term cover note for a temporary proof of insurance is most commonly used
outside of the United States.

How a Cover Note Works


Insurance companies issue a cover note to provide an individual with proof of
insurance before all the insurance paperwork has been processed. During
this time, the insurer may continue to evaluate the risks associated with
insuring the holder of the cover note, and the cover note will continue to serve
as the insured’s proof that coverage has been purchased until the insurer
issues the policy documents and certificate of insurance.

In general, the cover note provides the same level of coverage as the full
insurance policy, though insurers may place some restrictions while they
make any final determinations on the risks associated with the insurance
policy.

How long the cover note remains valid depends on how quickly the insurance
company can create a new policy, and whether the insurer has any problems
with the policy coverage in between selling the policy and issuing the policy
document. If the cover note expires before the permanent policy
documentation has been received, the insured individual will either receive an
automatic extension of the cover note, or they can request one be sent.

Insurance companies may allow someone who has recently purchased an


insurance policy (but does not yet have a formal policy) to cancel the
purchase. This allows someone who only holds a cover note to receive
a refund, provided that a claim on the policy has not been made during the
cancellation period.
KEY TAKEAWAYS

 A cover note is a temporary document issued by an insurance company


that provides proof of insurance coverage until a final insurance policy
can be issued.
 During this time, the insurer may continue to evaluate the risks
associated with insuring the holder of the cover note.
 The cover note will continue to serve as the insured’s proof that
coverage exists until the insurer issues the policy documents and
certificate of insurance or else denies issuing the policy

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