Washington State Insurance Practice Exam

When must a binder be given in the insurance process?

1. After the policy is issued

2. When the applicant remits premium money to the insurer

3. At the time of policy renewal

4. During the underwriting process

The correct answer is: After the policy is issued

A binder must be given in the insurance process before the policy is issued. A binder is a temporary agreement that provides immediate coverage until the full policy is issued. It is typically provided after the applicant has completed the application process and before the policy documents are finalized. This temporary coverage is important to protect the insured in case of any unforeseen events between the application and the issuance of the policy. Therefore, the correct answer is A. Options B, C, and D are incorrect because a binder is not given when the applicant remits premium money to the insurer, at the time of policy renewal, or during the underwriting process.