[T060]

temporary insurance agreement

A life insurance term used to describe the amount of insurance provided by the insurer between the period of time when the application is taken and the first mode of premium is made and the time the policy is issued. The limit of insurance on the temporary agreement may be less than the policy limit applied for. Most often the temporary insurance agreement is designed to pay if the insured dies before the policy is issued only if that company would have issued the policy except for the prior death of the insured.