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Question: 1 / 400

When does an offer in the insurance context occur?

When the insurer prepares a policy document

When the insurer’s underwriter approves the application

When the applicant submits the application

In the insurance context, an offer occurs when the applicant submits the application. This action signifies the applicant's intention to enter into a contractual agreement with the insurer, outlining the terms under which they wish to be insured. The submission serves as an invitation for the insurer to review the provided information and consider assuming the risk.

This moment is critical because it initiates the underwriting process, where the insurer examines the application details before making a decision on whether to accept or reject the insurance request. Other actions, such as receiving a quote or preparing a policy document, come later in the process and do not represent the initial offer of insurance. The roles each step plays in the broader transaction emphasize the importance of the application as the foundational offer in the insurance relationship.

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When the applicant receives a quote

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