The cover note is a temporary insurance contract that provides coverage while an insurance proposal is being considered. It specifies the rights and duties of the parties during its duration. Cover notes are typically printed forms that are filled out with details like the name, address, risk description, and duration of coverage. Insurance agents are usually authorized to issue cover notes, which may also be issued informally via letter. The cover note ends either when the insurer issues a policy or rejects the proposal, or upon expiration of the stated term, unless a policy has been issued. Both parties are bound by their legal duties under the temporary contract, such as the insured paying premiums and the insurer providing coverage for losses during the cover note period.

1. Chapter 5: Section 5

2. :The purpose & Definition•
Offer Time Acceptance
Gap
The purpose of the cover note is to give insurance •
cover whilst the proposal is being considered and
.until a policy is granted or refused
The cover note is a temporary insurance contract, •
determining the rights & duties of its parties and
.taking place during its currency

3. :The form & Issuance •
Usually, the cover note is printed in common•
form and contains the main terms of the policy
like )name, address, profession, risk description
and the cover note duration( which are filled by
.the insured person
Normally, the insurer‘s agent is the one who is•
entitled to issue the cover note. But it should be
noted that issuing the cover note in a formal
document is not necessary, it might be issued
informally by sending a letter to the insured by
the company head office

4. :The duration of the cover note •
:The cover note comes to an end
Acceptance of the insurer )represented by the
.)issuance of the policy
The cover note states in itself the time of its end, on
the date of expiration it will cease to have any force
UNLESS. the policy has been issued
The insurer may reserve his right to put an end to the
cover note before its expiration date, by intimating
his rejection of the proposal formin writing to the
.insured

5. :The effect of the cover note •
The
insured
Is bound to perform his legal duties
created by the contract, as to the payment of
.premium stated in the cover note
The
insurer
Is bound to give insurance coverage of
any losses or injuries during the cover note
.enforcement