Master the Maryland Property & Casualty Insurance Exam 2026 – Unleash Your Inner Insurance Pro!

A binder is a temporary contract that provides coverage until a formal policy is issued. In Maryland, this temporary arrangement ends when one of the following happens: the insurer cancels the binder, a policy is issued (the policy replaces the binder), or the policy expires. The option describing a fixed 60-day period after the binder is issued is not a standard termination trigger in Maryland, so it does not by itself cause the binder to cease. In practice, the binder can remain in effect until the policy is issued or until cancellation or expiration occurs, depending on the terms of the binder. That’s why the 60-day rule is the exception among the listed scenarios.