![]() ![]() The maximum and/or minimum term of a binder may be governed by state statute and/or company underwriting instructions.Īt the end of the binder's specified term, all coverage expires unless a new binder has been issued or the expired binder has been replaced with a policy. ![]() Preparation must be complete and accurate.Īll binders must conform to the state insurance code for the state in which the subject of insurance is located. It is imperative that only authorized people prepare them. The improper use of binders has become a major cause of producer's Errors and Omissions claims. For Commercial Lines, the layout format within the General Liability Section of the ACORD 75 is customized to the ISO Policy Simplification program.īefore issuing any binder, the following important considerations should be reviewed and considered carefully:Ī Binder (Cover Note) is a temporary insurance contract which provides coverage and must be underwritten as an insurance policy. The ACORD Insurance Binder addresses both Personal Lines and Commercial Lines risks, although most ACORD Personal Lines applications contain a "built-in" binder. The descriptions explain the information needed to properly issue a binder. This guide provides basic instructions to complete the ACORD Binder forms. ![]()
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