[C182]

cover note

1) A document issued by an agent or broker which tells the insured that the agent or broker has effected the insurance described therein. Since there are often delays in issuing formal policies, a cover note gives the insured a description of what insurance the agent or broker has put into effect. A cover note is similar to a binder although a binder usually refers to a document given by a company to an agent instead of one given by the agent to a customer.

2) Used by surplus lines brokers to evidence coverage placed with nonadmitted companies.

(See binder.)