Definition of "Binding authority"

Rae Dunkley real estate agent
Rae Dunkley, Real Estate Agent RE/MAX by the Lake

Same as term Binder: 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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