ACORD Binders


ACORD Binders are the most commonly used document for issuing a Binder. Some insurance companies have proprietary forms for some binders. You need to be aware of the form that the insurance company you represent wants you to use.

Who can issue Binders?

ACORD Binders can be issued by authorized, licensed insurance agents as evidence of insurance until the actual policy is issued. Many agency/company agreements give the agent the right to bind the insurance company to coverage at any hour.

What do Binders do?

ACORD Binders satisfy the need of providing immediate, though temporary, proof of insurance coverages and terms.

ACORD Binders are typically used to show proof of coverage for no more than a thirty day period, pending the issuance of the actual policy.

Issuance of ACORD Binders is conclusive proof of a preliminary contract. However, insurance binders can be conditional, depending on the terms stated on the actual binder.

All the provisions, wording and conditions of the actual policy are considered to be in force from the time the binder is issued.

What is the effective time of a Binders?

If a time is not stated on the binder for the effective time coverages are presumed to have begun at 12:01 AM or at noon of the effective date on the binder, depending on your state’s forms for the coverages bound.

Cancellation of Binders.

Although the binder is normally effective for only thirty days, coverage continues in effect until the actual notice of cancellation required by your state for the coverages is given or until the binder is replaced by the actual policy.