When you call an insurance agent for insurance on your new automobile and the agent provides coverage, there is an offer to buy and the agent has accepted the offer on behalf of his or her company.This acceptance is called:
A)an estoppel.
B)a duress.
C)an escrow.
D)a binder.
E)a waiver.

Question

Quizplus · Accepted Answer

A binder is a temporary insurance contract that provides proof of coverage until a permanent policy is issued. It signifies that the insurance agent has accepted the offer on behalf of the insurance company to provide coverage for the new automobile.

When You Call an Insurance Agent for Insurance on Your