Which of the following statements about temporary insurance is true?

Temporary insurance, often referred to in the context of insurance policies that provide coverage for a short duration, typically covers situations where immediate protection is needed before a formal policy is issued. The statement regarding the need for oral agreements to be confirmed in writing highlights an important principle in the insurance industry.

When temporary insurance is provided orally, especially in urgent situations or when an insured is waiting for final policy details, confirming the terms in writing serves several purposes. It ensures that both parties— the insurer and the insured—are clear on the coverage terms, obligations, and the specific period of coverage. Written confirmation mitigates misunderstandings that may arise from oral agreements, making it crucial to establish documented proof of the arrangements made verbally.

In contrast, other statements do not accurately reflect industry practices and principles related to temporary insurance. While temporary insurance can sometimes be effectively put in place with minimal documentation, it often is recommended or required to have at least some documentation to avoid disputes later on. The coverage term is not typically constrained to a specific number of days (like seven) without established policy language dictating such conditions. Additionally, temporary insurance is not limited to specific types of property; it can cover a range of needs depending on the circumstances, making the need for clarity all the