Which of the Following Statements About Offer and Acceptance for Insurance

question 20

Multiple Choice

Which of the following statements about offer and acceptance for insurance contracts is true?

• A)In property and liability insurance,agents typically do not have the authority to bind coverage.
• B)In life insurance,the agent can usually accept an offer by immediately binding coverage.
• C)In property insurance,the offer and acceptance are usually in writing but may be oral.
• D)In life insurance,completing the application and paying the first premium constitute acceptance of the offer from the insurer.

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Definitions:

Out-Of-Court Settlements

Agreements made privately between disputing parties without the need for a formal court ruling.

Advocacy Advertising

A form of advertising aimed at influencing public opinion or policy by promoting a particular viewpoint or cause.

Tobacco Companies

Firms involved in the manufacturing, marketing, and distribution of tobacco and tobacco-related products, such as cigarettes and cigars.

Issues Management

The proactive process of identifying, evaluating, and responding to public policy, social, and ethical issues that could impact an organization.