A producer with binding authority binds coverage by phone at 9 a.m.; the house burns at noon, before the insurer ever sees the application. The loss is:
Explanation
A binder is temporary coverage, oral or written, given by a producer acting within binding authority, and it protects the applicant from the moment it is given until the insurer issues the policy or declines the risk. Because the binder was in force at noon, the fire is covered on the terms the binder contemplated. Neither the absence of a printed policy nor an uncollected premium undoes coverage the producer has already bound.
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