General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
In an individual health insurance transaction, the completed and signed application is generally treated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The applicant's completed, signed application is the offer. The insurer reviews it and, if acceptable, issues the policy, which is the acceptance. This sequence satisfies the agreement element of the contract. Nothing is binding until the insurer acts; the application does not itself create coverage or promise anything about the applicant's future health.
Why the other options are wrong
- B) The insurer makes no prior offer; the applicant initiates the transaction with the application.
- C) Delivery of the policy completes acceptance; the application alone is not a policy.
- D) Application answers are representations of present facts, not warranties about future health.
Memory hook
You offer, the insurer disposes. The application is the opening move.