Completing the Application, Underwriting, Delivering Policies, Contract Law
An applicant submits an application and initial premium for a preferred life insurance policy, but the insurer issues a standard-rated policy with a higher premium. In contract law, how is the issuance of this altered policy treated?
Answer and explanation
Answer: D. Acceptance must comply with the offer's terms. Issuing materially different coverage or price is a counteroffer, which the applicant must accept before the modified contract is formed.Source: Texas Judiciary — USAA Texas Lloyds Co. v. Menchaca — Opinion page 31, offer and acceptance in strict compliance with offered terms
More completing the application, underwriting, delivering policies, contract law questions
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