Dan applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Dan pays the initial premium. Fletch writes a binder, which

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A binder is a temporary agreement indicating that a policy is pending and stating its essential terms such as the amount of coverage, premium, and duration of the policy. The binder does not attest to the truth of the statements in the application nor does it promise to consider it. The payment of the initial premium is acknowledged separately from the binder.

Dan Applies for a Life Insurance Policy with Equity Insurance