Health · Chapter 19 · Policy Issue & Delivery
Offer & Counteroffer (Rated Policy)
Definition
Completing the application and paying the first premium is the applicant's legal OFFER. Issuing the policy as requested is the insurer's acceptance; declining is rejection. If the insurer will insure the applicant only on a rated (substandard) basis at a higher premium, it has rejected the offer and made a COUNTEROFFER — which the applicant may reject, or accept by paying the additional premium and providing a statement of continued good health.
In plain English
"We won't take your deal, but here's ours" — a rated policy is a brand-new offer flowing the other way.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms