Ted is shopping for a new auto insurance policy and calls Sara, an independent agent, for advice on what type of policy to buy. Until the underwriter can review Ted's application, Sara issues a written binder to initiate coverage before the policy is issued. Which statement is correct about this written binder in relation to an oral binder?
A. They are essentially the same and have the same effect.
B. A written binder is preferable because it reduces the likelihood of a dispute over terms.
C. An oral binder is preferable because a written binder might limit coverage and contain errors.
D. A written binder is a legal document but an oral binder is not.