Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n):
A) premium agreement.
B) coinsurance clause.
C) option clause.
D) binder.

Question

Quizplus · Accepted Answer

A binder is a temporary insurance agreement that provides coverage until the actual policy is issued. It is usually provided by an insurance agent or company and it can be issued on the spot or within a short period of time. Binders typically expire within 30 to 90 days, or once the actual policy is issued, whichever comes first.

Temporary Insurance Coverage Prior to the Issuance of the Actual