Offer And Acceptance Offer And Acceptance
An offer may be made by the applicant by signing the application, paying the first premium, and, if necessary, submitting to a physical examination. Policy issuance, as applied for with submitted exams and other requirements, constitutes acceptance by the company. In certain situations, the company may make an offer when no premium payment is submitted with the application. The premium payment on the offered policy then constitutes acceptance by the applicant. Acceptance by the insurance company is made in good faith that information provided in the application has been truthful.