What is the maximum time a binder can remain in effect without replacement?

The maximum time a binder can remain in effect without replacement is 90 days. A binder serves as a temporary insurance contract that provides immediate coverage until a formal policy is issued. This temporary coverage is crucial because it allows the insured to have protection while waiting for the final policy to be processed and delivered.

In Washington, regulation dictates that a binder can last up to 90 days. This timeframe ensures that both the insurer and the insured have adequate time to finalize the details of the policy without leaving the insured unprotected for an extended period. After this duration, if a formal policy has not been issued, the coverage under the binder automatically expires, and the insured may need to seek alternative arrangements for coverage.

The other timeframes presented do not align with Washington's regulations regarding the duration of binders, making those options incorrect.