General Insurance PrinciplesCâu 187 / 474
A producer binds homeowners coverage on Monday and the insurer declines the application on Friday. During those days the applicant was:
a.covered, but only if the first premium had been paid
b.uncovered, because no policy number had been issued yet
c.covered only for fire, the one peril a binder can grant
d.covered, because a binder is real coverage
Giải thích
A binder is a temporary contract of insurance that runs until the policy is issued or the insurer gives notice that it will not write the risk, so the coverage in that gap is real. Waiting for a policy number confuses paperwork with the contract. A binder is not limited to one peril; it reflects the coverage applied for while underwriting is completed.
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Câu hỏi liên quan cùng chủ đề
- An agent whose appointment has ended keeps the insurer's sign in his window and writes a policy for a customer who knows nothing of it. Coverage may still exist under:
- When coverage is placed by a broker rather than by an appointed agent, the broker legally represents:
- A producer collects a client's premium and parks it in his personal checking account for two weeks before forwarding it. This violates:
- The structural difference between a stock insurer and a mutual insurer is that a mutual:
- A reciprocal insurance exchange is distinguished from other insurers by being:
- In an insurance course, Lloyd's of London is best described as:
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