Business Glossary

individual responsible for insurance agency operation in a particular area, including sale of life and health insurance, servicing policies already sold, recruiting and training agents, and providing administrative support. General agents are compensated on a commission basis and usually pay all expenses of administering their agencies.

sum of money paid to evidence good faith until a transaction is finalized. In insurance, the binder is an agreement executed by an insurer (or sometimes an agent) that puts insurance coverage into force before the contract is signed and the premium paid. In real estate, the binder holds the sale until the closing and is refundable.