Life & Health · Chapter 3 · Contract Law
Offer & Acceptance (in insurance)
Definition
The applicant makes the offer = completed application + initial premium. An app without premium is only an invitation. The insurer accepts by issuing/delivering the policy.
Exam tip
If the insurer changes terms, that's a counteroffer — the original offer is void until the applicant accepts the new terms.
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