Ace Arkansas Life & Health Insurance 2025 – Secure Your Success!

Question: 1 / 400

When an applicant completes the application and submits it to the insurer along with a premium check, when is the applicant's offer considered accepted?

When the applicant submits the application

The correct answer is A. When the applicant submits the application. In insurance contract law, the principle of acceptance dictates that an offer is considered accepted as soon as the applicant submits the application. This means that the insurer's acceptance of the offer occurs upon receiving the completed application, even before any premiums are paid or a policy is issued. This fundamental principle helps establish the effective date of coverage and the start of the insurance contract between the applicant and the insurer.

Options B, C, and D are incorrect because the acceptance of the offer by the insurer actually happens when the applicant submits the application, not when the premium check is received, the policy is issued, or when the application is reviewed for completeness.

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When the insurer receives the premium check

When the insurer issues a policy

When the application is reviewed for completeness

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