In contract law, it is an agreement to an offer. Both offer and acceptance are essential for contract formation. For insurance contracts, the insurer usually expresses willingness to underwrite a risk by issuing a policy in exchange for a premium from an applicant. Both actions, offer (application for insurance coverage) by a client and acceptance (willingness to satisfy the need for risk underwriting) by a firm constitutes the insurance contract.
August 9, 2024
