Common use of Binders Clause in Contracts

Binders. Whenever there is a jus- tifiable reason for not issuing a policy or endorsement, as required, a written binder will be acceptable for a period not to exceed 60 days from the effective date of the insurance. The written binder must have attached thereto the approved form of mortgage clause. Such a binder will be submitted to the County Supervisor in lieu of an insur- ance policy or endorsement and the in- surance policy or endorsement will be submitted on or before the expiration date of the binder. The State Director, with the advice of the OGC and subject to prior approval of the National Of- fice, may issue a State Instruction au- thorizing such binders to be accepted for periods longer than 60 days.