Definition: An Insurance Binder is immediate insurance coverage that can be in oral or written form. Usually provides temporary insurance coverage for a specified time until a formal policy is accepted or denied.
Examples: Until Joe's credit and past insurance history could be researched, his agent gave him a binder for 10 days. The binder gave Joe all the same coverage's and rights as he would have with a regular insurance policy, but would automatically cease after the 10 days.
