General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
In the typical life insurance transaction, when is the offer to contract generally considered made?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The applicant makes the offer by submitting the application and initial premium; the insurer accepts by approving and issuing the policy, or rejects by declining. This means the insurer is not bound until it acts, and the applicant can generally withdraw the application before the insurer accepts. Understanding the offer-acceptance point matters for conditional receipts and for determining when coverage attaches. The agent's solicitation is not an offer — it is an invitation for the applicant to make one.
Why the other options are wrong
- A) Issuing the policy is the acceptance, not the offer; it responds to the applicant's offer.
- B) Initial contact and discussion is solicitation, which is not a formal offer to contract.
- C) Delivery and the receipt relate to acceptance and policy-delivery requirements, not the original offer.
Memory hook
Applicant offers (application + premium); insurer accepts (approval + issue). The ball starts with the applicant.