What is bind insurance?

“Bind insurance” is not a commonly used term in the insurance industry. However, it’s possible that you might be referring to “binding authority” or “binding coverage.”

Binding authority is the authority given to an insurance agent or broker to make an immediate decision on behalf of an insurer to provide coverage to a customer. It allows agents to issue policies on behalf of the insurance company without having to wait for approval from underwriters.

Binding coverage, on the other hand, refers to the process of issuing insurance coverage to a customer once the underwriting process is complete and the policy has been approved. The binding of coverage is the point at which the insurance policy becomes effective and the insurer is bound to provide coverage for the policyholder.

In summary, binding authority is the ability of an agent to make a decision to provide coverage, while binding coverage refers to the point at which coverage becomes effective.