What happens if a client with a TIA dies before the life insurance policy is issued?

In the context of life insurance applications, if a client who has applied for a policy—specifically one that involves a Temporary Insurance Agreement (TIA)—dies before the policy is officially issued, the insurance company may still be liable to pay a claim according to the terms of the TIA.

A Temporary Insurance Agreement often provides coverage even during the period between the application submission and the policy issuance, provided that the applicant meets certain conditions outlined in the agreement and the event that triggers the claim falls within those parameters. This is a crucial aspect of TIAs, as they are intended to offer immediate protection to applicants who are awaiting the formal underwriting process.

Therefore, if the client dies while under the coverage provided by the TIA, the insurance company is obligated to pay the claim, assuming no material misrepresentations were made during the application process, and other eligibility conditions are met. This coverage can vary by insurer and specific agreement conditions, but generally, it reflects the purpose of a TIA to protect the applicant during this interim period.

Other options, such as the insurance company being exempt from liability or the application being automatically canceled, do not accurately describe the intent and function of a Temporary Insurance Agreement under these circumstances.