P&CMImedium
Under MCL 500.2250 and Michigan agency law, an oral binder of property insurance is generally:
AVoid as a matter of law under all circumstances
Enforceable for a reasonable time pending issuance of the written policy
CEnforceable only if confirmed by a notarized telegram within 24 hours of the oral agreement
DEnforceable for a maximum of 24 hours from the time the oral binder is created
Why this is the answer
Under MCL 500.2250 and MI case law, a licensed producer with binding authority can orally bind coverage. The binder remains in effect for a reasonable period (usually up to 90 days) on the same terms as the policy that will issue, until replaced by the written policy or canceled.
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