What authority does a binder give an agent in Ohio?

In Ohio, a binder serves as a temporary contract that provides immediate insurance coverage until a formal policy is issued. This means that when an agent uses a binder, they have the authority to secure coverage for a client on a temporary basis, ensuring that there is no lapse in coverage while the details of the insurance are finalized.

The significance of this authority is that it allows individuals or businesses to gain protection right away without waiting for the complete underwriting process of a traditional policy. This can be critical in situations where coverage is urgently needed, thereby providing peace of mind to the insured while the formal policy is being prepared.

Other options, such as the ability to negotiate premiums, deny claims, or revoke policies, do not accurately describe the specific authority granted by a binder. Negotiating premiums typically involves more formal underwriting and discussions with the insurer beyond what a binder allows. Denying claims and revoking policies are not within the framework of what a binder permits, as those actions pertain to claims handling and policy administration once the policy is in effect rather than the temporary coverage the binder provides.