This type of binder implies that coverage exists only if the underwriter ultimately accepts the application for insurance.Thus, if the applicant dies prior to the final policy issuance, payment is made if the applicant would have been acceptable to the insurer as an insured.Identify this type of binder.
A)Facultative binder
B)Conditional binder
C)General binder
D)Estoppel
E)Waiver

Question

Quizplus · Accepted Answer

A conditional binder provides temporary insurance coverage, contingent upon the underwriter's final acceptance of the insurance application. If the underwriter would have accepted the application, the coverage is considered to have been in effect, even if the applicant dies before the policy is formally issued.

This Type of Binder Implies That Coverage Exists Only If