What is BINDER? Definition of BINDER in Black's Law Dictionary - Legal dictionary - Glossary of legal terms.
The memorandum of an agreement for insurance, intended to give temporary protection pending investigation of the risk and issuance of a formal policy. Seiderman v. Herman Perla Inc., 268 N.Y. 188, 197 N.E. 190, 191.
A verbal contract of insurance in prsenti, of which the insurance agent makes a memorandum, temporary in its nature, Norwich Union Fire Ins. Society v. Dalton, Tex. Civ.App., 175 S.W. 459, 460; thus constituting a short method of issuing a temporary policy to continue until execution of the formal one, Sherri v. National Surety Co., 243 N.Y. 266, 153 N.E. 70, 71. Carew, Shaw & Bernaseoni General Casualty Co. of America, 189 Wash. 329, 65 P.2d 689, 695.
A "binder" as used in marine insurance is an application for insurance made on behalf of the proposed insured and approved by the insurer or his agent. Muller v. Globe & Rutgers Fire Ins. Co. of City of New York, C.C.A.N.Y., 246 F. 759,760.
More On This Topic: In American Law
That's the definition of BINDER in Black's Law Dictionary - Legal dictionary - Glossary of legal terms. Courtesy of Cekhukum.com.