South Carolina Life Insurance Test 2025 – 400 Free Practice Questions to Pass the Exam

In insurance, the offer is typically made when the application is submitted. This moment marks the initiation of the contract process, as the applicant essentially proposes to the insurer the terms under which they would like to receive coverage. By submitting the application, the applicant is indicating their intention to enter into a contract, and it is this act that constitutes the offer in the context of insurance contracts.

The premium payment, while important, is not the point at which the offer is made; rather, it is usually associated with the acceptance of the policy by the insurer. The delivery of the policy can be seen as the final step in the contract formation process, confirming that the insurer has accepted the offer made by the applicant. Approval of the application by the insurer is a critical step in evaluating risk and determining whether the offer is met with acceptance, but it follows the initial act of submission by the applicant. Thus, the submission of the application is where it all begins.