Definition of "Binder"

Rachel Stoltzfus real estate agent
Rachel Stoltzfus, Real Estate Agent Iron Valley Real Estate of Lancaster

Temporary insurance contract providing coverage until a permanent policy is issued. In property and casualty insurance, some agents have authority to bind the insurance company to cover until a policy can be issued. For example, the purchaser of an automobile can call the agent, who can then bind the insurance company to temporary coverage.

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