noun
binder
An agreement providing temporary insurance coverage.
The agent issues a binder while the insurer prepares the policy.
Etymology
Binding can mean making an obligation effective. An insurance binder does that temporarily, establishing coverage while the full policy is being prepared.
More examples
- Our insurance binder provides coverage for thirty days.
- The lender requests a binder before closing on the house.
- Check the binder for the date your coverage begins.
Forms
binder · binders
insurer noun — a company that provides insurance coverage
Similar words
- insurance policy
- Usually documents longer-term coverage rather than a temporary agreement.