General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In an individual health insurance transaction, which of the following typically constitutes the offer?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The applicant's completed and signed application is the offer in the insurance contract. The insurer accepts the offer when it approves the application and issues the policy, sometimes with modifications that amount to a counteroffer. Advertising and solicitation are invitations to do business, not offers, and policy delivery is the act of tendering the accepted policy to the insured. Identifying the offer and acceptance is basic to understanding how the contract is formed.
Why the other options are wrong
- A) Advertisements are invitations to deal, not offers that the applicant can accept.
- C) Policy delivery occurs after acceptance and brings the contract into effect; it is not the offer.
- D) The agent's solicitation invites the applicant to apply; it is not the offer itself.
Memory hook
You make the offer in the application; the insurer accepts it.