Minnesota Real Estate Exam Practice Question
The purpose of an insurance binder is to
Correct Answer: A
Rationale: An insurance binder serves to provide temporary protection by offering coverage until the formal policy is issued. This ensures that the insured is protected during the interim period.
Option B is incorrect as the policy period is detailed in the insurance policy itself, not the binder. Option C is misleading; while the binder may initiate the process, its primary function is not to start underwriting but to provide immediate coverage. Option D is also incorrect; while a binder may reference a deposit premium, its main purpose is not to secure that payment but to ensure coverage.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now