Life Insurance - What Is A Temporary Insurance Application And Agreement (TIAA)?

A temporary insurance application and agreement (TIAA) in many cases can be a receipt for the first full premium that is collected at the same time as a completed signed term (or permanent) life insurance application is taken by an insurance agent. It provides temporary insurance coverage while the insurer processes the policy, as defined in the receipt. However each insurance company, as well each state, can have different requirements, so it is important to read the receipt offered to you carefully to make sure you understand it correctly before signing. 

Many receipts will have different terms and conditions. Some examples could be, but are not limited to:

  • A certain time limit on the agreement until it expires (End Date of Coverage)
  • Limited to a maximum amount of coverage for the temporary agreement. (i.e. : $1,000,000)
  • Insured would have to answer to “no" all questions listed on the Temporary Insurance Application and Agreement (TIAA) to qualify.
  • Limited to return of premium if any part of the life insurance application or TIAA contains a misrepresentation material to the insurer.
  • Limited to return of premium if proposed insured dies due to suicide.

Other terms you may hear that may similar (or even slightly different) meanings may be: 
Conditional Receipt, Conditional Receipt Agreement, Binding Receipt, Temporary Insurance Application and Agreement, Limited Insurance Agreement, etc. and some may differ from each other, so as I mentioned it is important to read the fine print. 

Generally conditional insurance coverage continues until the insurance company either refunds the premium or accepts the risk and issues the policy. Coverage under a Conditional Receipt is conditional on the person being insured having completed all medical requirements and being insurable on the premium basis applied for.

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Note: Life Insurance information can be confusing to many people. As an "independent licensed agent" I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose a life insurance policy, from many choices of different insurance companies, that you feel fits your needs. Plus if you choose to work with me you will have personalized service by a local agent that can shop premium quotes for you. If you would like my assistance to discuss and/or start the process of getting you insured please call me at 941-404-5334. 

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