How long can a binder be effective?

A binder is a temporary insurance contract that provides immediate coverage until the formal policy is issued. In Nevada, a binder can generally be effective for up to 90 days. This duration allows both the insurer and the insured time to finalize the details of the policy without leaving the insured person unprotected during that period.

After 90 days, the binder will automatically expire unless it is extended or converted into a permanent insurance policy. This time frame ensures that the insured party is covered while completing any necessary underwriting requirements or paperwork, which can be particularly important if immediate coverage is needed.

Understanding the duration of a binder is crucial for individuals seeking insurance, as it informs them about how long they have coverage while finalizing their insurance arrangements.