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

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A binder is a temporary agreement that provides coverage until the actual policy is issued. It typically indicates that a policy is pending and states its essential terms, such as the amount of coverage, premium, and effective date. A binder does not attest to the truth of the application or promise to consider it, nor does it evidence receipt of payment (although it may state that payment was made). Therefore, the best choice is D, which describes the typical purpose and content of a binder.

Donald Applies for a Life Insurance Policy with Equity Insurance