binder

Said to be synonymous with insurance policy. Red Cab Co. v St. Paul Mercury Indem. Co. (CA7 Ind) 98 F2d 189; but better defined as a written instrument, sometimes called a binding slip or interim receipt, used when an insurance policy cannot be issued immediately; to evidence that the insurance coverage attaches at a specified time and continues until the policy is issued or the risk is declined and notice thereof given; a written memorandum of the most important terms of a preliminary contract of insurance intended to give temporary protection to the owner pending the investigation by the company or until the issuance of a formal policy. Sherri v National Surety Co. 243 NY 266, 270, 153 NE 70. Life, health, and accident insurance companies have devised and used a form of binder, called a binding receipt or conditional receipt, which actually does not bind the insurance company absolutely to protect the risk pending the issuance of a policy, but is conditioned upon the approval of the application, the issuance and delivery of a policy, or similar condition. 29 Am J Rev ed Ins § 208.