Definition Of Binding Authority In Insurance

Definition of "Binding authority"

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.