Binder – Term Of The Day
A binder can be used in WC, but is not recommended. A temporary but legal agreement that provides proof of coverage until a policy can be issued. Provided by agents or carriers, binders should clearly define the terms of the policy that will be issued. These terms of coverage should include time limits, type of policy, the name of the insurer, the name of the insured, and the cost of the insurance and all other information that may be used as proof of insurance.
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