Binders can be issued for a period not to exceed

Binders can be issued for a period not to exceed

• A. 30 days
• B. 45 days
• C. 60 days
• D. 90 days

Answer: (B)

Temporary evidence of coverage, called a binder, gives immediate protection while a policy is prepared and issued. In Maryland, this binder can run for no more than 45 days. That 45-day limit keeps coverage tied to a definite timeframe, ensuring the insurer quickly converts the arrangement into a formal policy or ends the temporary protection. During the binder period, the insured has coverage under the stated terms (risk, limits, premium, effective date), but once a policy is issued the binder ends. If no policy is issued within 45 days, the binder expires and coverage ends unless a new arrangement is put in place.

Temporary evidence of coverage, called a binder, gives immediate protection while a policy is prepared and issued. In Maryland, this binder can run for no more than 45 days. That 45-day limit keeps coverage tied to a definite timeframe, ensuring the insurer quickly converts the arrangement into a formal policy or ends the temporary protection. During the binder period, the insured has coverage under the stated terms (risk, limits, premium, effective date), but once a policy is issued the binder ends. If no policy is issued within 45 days, the binder expires and coverage ends unless a new arrangement is put in place.