What evidence indicates that insurance coverage is in effect temporarily?

A binder is a temporary agreement that provides evidence of insurance coverage while the formal policy is being prepared. It serves as an interim solution, confirming that the insurance company has accepted the risk and coverage is in place even before the actual policy documents are issued. Binders typically outline the coverage details, limits, and effective dates, ensuring the insured is protected during this interim period.

The other options serve different purposes: a policy document is the final formal agreement that outlines the terms of coverage, a certificate of insurance provides proof of coverage to third parties but does not indicate that coverage is temporary, and a contractual agreement may refer to arrangements between parties but is not specifically tied to the provision of insurance coverage at all. This context reinforces the unique role of a binder in indicating temporary insurance coverage.