How many days should an insurer give for prior notice of cancellation of a binder?

• A. 3 days
• B. 5 days
• C. 7 days
• D. 10 days

Answer: (B)

Binder coverage is a temporary, immediate protection that lasts only until a policy is issued or the binder ends. Because this is bridging coverage, regulators set a short, predictable notice period for cancellation so the insured isn’t left unprotected for too long, yet the insurer isn’t tied up with long lead times. In Florida, five days’ prior notice is required when canceling a binder. This provides a reasonable window for the insured to secure alternative coverage without creating an extended lapse. Shorter than five days would risk too little time to react, while longer than five days isn’t mandated for binders, which is why five days is the correct standard. The cancellation takes effect on the date specified in the notice.