A Binder is an immediate but temporary insurance coverage provided for a limited time. A Binder covers the insured temporarily until a formal policy is issued.
Mostly, insurance companies issue binders before a formal policy is issued. You would need an insurance binder for almost every type of insurance ranging from house insurance, life insurance, health insurance, to auto insurance etc.
Alex has been provided with a 10 days insurance binder until his past insurance history could be researched. During this period, Alex will receive same rights and coverage as one receives with a regular insurance policy.