Binders cease at the earliest of which of the following?

• A. Policy expiration
• B. Insurer cancellation of the binder
• C. Insured cancellation
• D. Any of the above

Answer: (D)

A binder is temporary coverage that lasts only until something ends it, bridging the gap until an actual policy is issued. The binder ceases at the earliest of several possible events: when the policy expires, when the insurer cancels the binder, or when the insured cancels the binder. Since any one of these events can terminate the binder, the earliest occurrence among them ends the binder. That’s why the best answer is that any of the above can terminate the binder.