What does Offer and Acceptance mean? Read on to discover the definition & meaning of the term Offer and Acceptance - to help you better understand the language used in insurance policies.
Offer and Acceptance
The 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, constitutes acceptance by the company. Or, the offer may be made by the company when no premium payment is submitted with application. Premium payment on the offered policy then constitutes acceptance by the applicant.
We hope the you have a better understanding of the meaning of Offer and Acceptance.