ACORD 76 Instructions


ACORD 76 (9/93) – Binder Log
This form is used to record and control the disposition of binders.

The Binder Log is extremely beneficial to Producers for recording and
controlling the disposition of binders. A numerical assignment and consecutive listing aids in keeping track of the expiration of all binders issued. It further confirms that coverage was bound on a specific date and the binder was not prepared after a loss. The other information listed in the log enhances timely handling.

At regular intervals, a designated person should follow up on each binder to complete the “Disposition” column.

Binder #
Enter the assigned numbers in consecutive order. If a binder is spoiled, enter the number and so note.

Insured
Name of the insured. If there is more than one insured, give the name of the First Named Insured only.

Type
An abbreviation of the type of binder issued (i.e., GL may refer to General Liability, CP to Commercial Property, A to Automobile, etc.).

Initiated By
Initials of the person who issued or is responsible for the binder.

Company
Name of the binding company. Do not use the group or trade name when the binder is issued by a member company.

Effective Date
Month/day/year the binder becomes effective.

Expiration Date
Month/day/year the binder expires.

Suspense Date
A procedure for reviewing binder status prior to the expiration date should be established in each agency. The time period established for review prior to expiration will vary according to agency size and operation. Enter the month/day/year the binder will be reviewed using the procedures established.

Disposition
Disposition of the binder (e.g., Replaced by a policy – enter the policy number. Binder extended by a new binder – indicate the new binder number. Binder charge is made – Binder expired … enter charge. Binder cancelled – show cancellation date and charge. Binder dropped without coverage).

* Most states require that a premium charge be made when a company has been exposed to a loss under a binder. If a binder is cancelled back to the effective date, it is advisable to make sure the company and insured are notified that no coverage was provided.

* Most states require that binders be retained for a specified number of years. Be sure to check the appropriate state insurance code to determine the required holding period.