What is temporary coverage note in SAP FS-PM - Policy Management?

SAP Term: temporary coverage note

• Component: FS-PM

• Component Name: Policy Management

• Description: Provides temporary insurance cover for the period of time from the start of contractual negotiations or from the conclusion of the contract until the insurance policy is dispatched or until payment of the initial premium by the policyholder. This depends on the scope of insurance applied for. The temporary coverage note is a legal document in its own right that is independent of subsequent contractual relationships.

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• Key Concepts: 
  A Temporary Coverage Note (TCN) is a document used in SAP FS-PM Policy Management to provide temporary coverage for a policyholder. It is used when the policyholder has requested a change to their policy, but the change has not yet been approved or implemented. The TCN allows the policyholder to receive coverage for the requested change until the policy is updated. 
  
  How to use it: 
  To create a TCN, the policyholder must first submit a request for a change to their policy. Once the request is received, the insurer can create a TCN that will provide temporary coverage for the requested change. The TCN will be valid until the policy is updated with the requested change. 
  
  Tips & Tricks: 
  When creating a TCN, it is important to ensure that all of the necessary information is included in the document. This includes the policyholder’s name, address, and contact information; the requested change; and any other relevant information. 
  
  Related Information: 
  The Temporary Coverage Note is just one of many documents used in SAP FS-PM Policy Management. Other documents include Policy Change Requests, Endorsements, and Cancellation Notices.