What is the Definition of Binder?

What is the Definition of Binder?

Temporary authorization of coverage issued prior to the actual insurance policy.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Insurance?

What is the Definition of Binder?

What is the Definition of Binder?

Check out other definition of insurance terms below:

What is the Meaning of INSOLVENCY In Insurance Terms?

Insurer’s inability to pay debts. Insurance insolvency standards and the regulatory actions taken vary from state to state. When regulators deem an insurance company is in danger of becoming insolvent, they can take one of three actions: place a company in conservatorship or rehabilitation, if the company can be saved, or in liquidation, if salvage is deemed impossible. The difference between the first two options is one of degree—regulators guide companies in conservatorship but direct those in rehabilitation. Typically the first sign of problems is inability to pass the financial tests regulators administer as a routine procedure. (See Liquidation; Risk-based capital)

What is the Meaning of INSTITUTIONAL INVESTOR In Insurance Terms?

An organization such as a bank or insurance company that buys and sells large quantities of securities.

What is the Meaning of INSURABLE INTEREST In Insurance Terms?

In insurance, a person exhibits an insurable interest in a potential loss if that person will suffer a genuine economic loss if the event insured against occurs. Without the presence of insurable interest, an insurance contract is not formed for a lawful purpose and, thus, is not a valid contract.

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