Question

All of the following are true regarding Binders except:

A. Binders apply to Life or Disability Insurance only.
B. A binder shall be valid for the period specified therein not exceeding 90 days from the date of execution of the binder or, if not specified, for that period of 90 days.
C. A binder shall be deemed an insurance policy for the purpose of proving that the insured has the insurance coverage specified in the binder.
D. Binder means a writing which includes the name and address of the insured and any additional named insureds, mortgagees, or lienholders, a description of the property insured, if applicable, a description of the nature and amount of coverage and any special exclusions not contained in a standard policy, the identity of the insurer and the agent executing the binder, the effective date of coverage, the binder number or the policy number where applicable to a policy extension.

Answer 1

Binders are temporary insurance documents that provide proof of insurance coverage. They apply to various types of insurance and have specific requirements and conditions. A binder is not considered an insurance policy but serves as evidence of coverage until the actual policy is issued.

Step-by-step explanation:

The subject of this question is Law. The question is asking about true statements regarding Binders. The statements are A. Binders apply to Life or Disability Insurance only. B. A binder shall be valid for the period specified therein not exceeding 90 days from the date of execution of the binder or, if not specified, for that period of 90 days. C. A binder shall be deemed an insurance policy for the purpose of proving that the insured has the insurance coverage specified in the binder. D. Binder means a writing which includes the name and address of the insured and any additional named insureds, mortgagees, or lienholders, a description of the property insured, if applicable, a description of the nature and amount of coverage and any special exclusions not contained in a standard policy, the identity of the insurer and the agent executing the binder, the effective date of coverage, the binder number or the policy number where applicable to a policy extension.