A producer binds coverage on a California home while the application is still in underwriting. Under Insurance Code §382.5, a binder issued in compliance with that section is:

Explanation

Section 382.5 defines a binder as a WRITING that gives the insured's name and address, describes the property and the nature and amount of coverage, identifies the insurer and the agent executing it, and states the effective date, and it limits the binder to a period not exceeding 90 days from the date of execution. The section then provides that a binder issued in accordance with it 'shall be deemed an insurance policy for the purpose of proving that the insured has the insurance coverage specified in the binder.' (a) is wrong because a complying binder is real, enforceable coverage rather than an expression of interest; (b) states the wrong outer limit, which is 90 days, not 30; and (d) invents a signature-and-return condition the statute does not contain.