Binder
/BYN-dur/
Temporary proof of insurance before your policy is issued.
Definition
A binder is a temporary document that provides proof of insurance coverage while your actual policy is being prepared. Binders typically last 30-60 days and include essential coverage details. They're commonly used when you need immediate proof of coverage, such as when buying a car.
Example
The agent issued a binder so Jennifer could drive her new car home while the full policy was being processed.
More General Terms Terms
The amount you pay for your insurance policy.
The amount you pay out-of-pocket before insurance kicks in.
The contract between you and your insurance company.
A request for payment under your insurance policy.
The protection provided by your insurance policy.
The maximum amount an insurer will pay for a covered loss.
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