Conditional Coverage

When you first apply for a policy, the insurance company has not yet had an opportunity to review all the pertinent information regarding your application. Your insurance company may only provide "conditional coverage" under the terms stipulated in their "conditional receipt" page of the application.

Each insurance company has its own specific rules regarding conditional coverage. Inside your insurance application should be a conditional receipt page. This page includes the exact rules and conditions that the insurance company requires you to meet if you are to qualify for conditional coverage.

Companies limit the amount of conditional coverage they offer and in most cases a full initial premium is required to accompany the application if conditional coverage is being requested. Pay particular attention to the qualifications you must meet to be covered. Many companies will only offer conditional coverage if you ultimately qualify for the rate class you apply for.

Since coverage under this feature is conditional, you may not qualify and the company may not pay a claim. Never cancel existing insurance until you have new coverage properly in place.

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