Policy Structure
Binder
A temporary agreement issued by an insurer or authorized agent that provides immediate proof of insurance coverage while the formal policy is being prepared and issued. A binder typically outlines the essential terms of coverage including limits, deductible, effective dates, and named insured. Binders are legally binding contracts and usually remain in effect for 30 to 90 days or until the formal policy is delivered, whichever comes first.
Related terms
Certificate of InsuranceA document issued by an insurance carrier or broker that provides evidence of coverage, including th...EndorsementA written amendment attached to an insurance policy that modifies the policy's terms, conditions, ex...Binding AuthorityThe delegated power granted by an insurance carrier to an agent, broker, or managing general agent t...