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cover note

for 3rd year students

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cover note

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Presentation Transcript

  1. Chapter 5: Section 5 Cover Note

  2. •The purpose & Definition: Offer Acceptance Time Gap • The purpose of the cover note is to give insurance cover whilst the proposal is being considered and until a policy is granted or refused. • The cover note is a temporary insurance contract, determining the rights & duties of its parties and taking place during its currency.

  3. • The form & Issuance: •Usually, the cover note is printed in common form and contains the main terms of the policy like (name, address, profession, risk description and the cover note duration) which are filled by the insured person. •Normally, the insurer’s agent is the one who is entitled to issue the cover note. But it should be noted that issuing the cover note in a formal document is not necessary, it might be issued informally by sending a letter to the insured by the company head office

  4. • The duration of the cover note: The cover note comes to an end: Acceptance of the insurer (represented by the issuance of the policy). The cover note states in itself the time of its end, on the date of expiration it will cease to have any force UNLESS the policy has been issued. The insurer may reserve his right to put an end to the cover note before its expiration date, by intimating his rejection of the proposal form in writing to the insured.

  5. •The effect of the cover note: The insured Is bound to perform his legal duties created by the contract, as to the payment of premium stated in the cover note. The insurer Is bound to give insurance coverage of any losses or injuries during the cover note enforcement.

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