binder Hear it!

binder definition - finance
  1. Money that is paid as part of a contract to show good faith until the transaction is completed.
  2. In the insurance industry, a binder provides proof to the insured that coverage has been approved until the actual insurance policy is delivered and the payment is submitted to the insurance company. A binder is a letter guaranteeing insurance coverage.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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