Temporary contracts of insurance-binders-protect the insured during the time between completion of the application and issuance of the policy. They are an accepted and necessary part of the insurance business, used in connection with a wide variety of insurance P7:oducts. But when alleged coverage under a binder is the subject of litigation, the results are often inconsistent and, sometimes, indefensible. This article provides a comprehensive discussion of binders, including the differences between standard form and manuscript binders, binding receipts in property and casualty insurance and conditional receipts in life insurance policies, the various kinds of conditional receipts, and otherwise. The author concludes with recommendations as to how to ensure greater consistency in binder coverage litigation.
Peter Nash Swisher, Insurance Binders Revisited, 39 Tort Trial & Ins. Prac. L.J. 1011 (2004).