What is the primary reason an insurance company offers a TIA?

The primary reason an insurance company offers a Temporary Insurance Agreement (TIA) is to immediately bind coverage while the main policy is being processed. A TIA allows the insured to receive coverage for a specific period, even before the formal policy is finalized. This can be particularly beneficial for applicants who need immediate protection, as it ensures that they are covered during the underwriting process, which may take some time.

A TIA provides peace of mind for both the insurer and the applicant, allowing the applicant to know they have coverage in place immediately. This is especially important in situations where there may be a sudden need for life insurance, such as during a critical life event.

While some of the other options may seem plausible, they do not capture the primary function and purpose of a TIA. For example, reducing administrative workload or risk-assessing applicants more thoroughly are not core reasons behind the implementation of a TIA. Instead, the focus is on providing immediate coverage to address the applicant's insurance needs prior to the issuance of a full policy.