What type of agreement is usually put in place as temporary insurance while the company determines whether to accept or reject an insurance application?

A) Temporary plan
B) Binder agreement
C) Preauthorization agreement
D) Prebinding agreement
E) Preemptive agreement

Temporary Insurance

Short-term coverage designed to provide protection for a limited period, often while awaiting the implementation of permanent insurance.

Binder Agreement

A temporary insurance contract providing coverage until a formal policy is issued.

Insurance Application

A document that contains an individual's or entity’s request for insurance coverage, detailing the specifics of the coverage sought.