A binder for property insurance is a temporary coverage document. How long can it remain in force in Maryland?

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

Answer: (C)

A binder is a temporary form of coverage that takes effect immediately to protect the insured while the formal policy is being written. In Maryland, that temporary coverage can stay in force for up to 45 days. This short window ensures there's no coverage gap right after a binder is issued, giving the insurer time to issue the actual policy and the insured protection the moment it’s needed. Once the policy is issued, the binder ends; if it hasn’t been issued by the end of the 45 days, the binder expires unless an extension has been agreed in writing beforehand.