Completing the Application, Underwriting, Delivering Policies, Contract Law
An applicant completes an application and pays the initial premium with it. In contract terms, what has the applicant done?
Answer and explanation
Answer: A. When the application is submitted with premium, the applicant is the offeror. The insurer accepts by issuing the policy as applied for; issuing on different terms is a counteroffer.Source: NAIC Life Insurance Buyer's Guide — The policy as a contract: offer and acceptance
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