In Alabama, how long is an insurance binder valid?

In Alabama, an insurance binder is a temporary agreement that provides proof of insurance coverage until a formal policy is issued. The correct duration for the validity of an insurance binder is 90 days. This time frame allows both the insured and the insurer adequate time to finalize the details of the policy and ensure that all terms are agreed upon before the binder expires.

This 90-day period is significant because it helps to protect the interests of the insured by ensuring they are covered during a transitional period, while also giving the insurer time to assess the risk and issue a policy that accurately reflects the coverage needed. This approach balances the immediate need for coverage with the practicalities of underwriting and policy issuance in the insurance industry.