In forming an Insurance Contract when does acceptance usually occur

In forming an Insurance Contract when does acceptance usually occur

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While informing an Insurance Contract acceptance usually occurs When an insurer approves a prepaid application.

So the answer is (B). When an insurer approves a prepaid application

  • (A). When an insured submits an application
  • (B). When an insurer approves a prepaid application
  • (C). When an insurer delivers the policy
  • (D). When an insurer delivers the policy

What is an Insurance Contract?

An insurance contract is a written agreement between two parties to determine the terms and conditions of compensation for injury or damage, which will be paid by an insurer (usually a company) if the insured party sustains such injury or damage. The contract specifies what benefits will be afforded in case of such an event, how claims are to be processed, and how much will be paid. It provides for a legal remedy in cases of loss or damage.

Insurance is a contract of indemnity by which one party (the insurer) agrees to compensate another party (the insured) for losses or damage that may result from an accident or other event. The insured becomes the insurer’s liability, while the insurer becomes the insured party’s security.
The concept of insurance evolved long before recorded history, and at one time was a common practice in many cultures.

The first known insurance contract was a pledge agreement, established in 300 BCE between Athens and its citizens, to reimburse the victims of war.

Almost all forms of insurance have their origins in property contracts, dating back to the first known insurer (or ‘one who insures’) in ancient Rome. For example, Roman law contained the “Lex Aquilia”, a law that allowed a person or an entire family to insure themselves against famine.

Q. What is the type of insurance contract in the USA?

There are four types of insurance contracts in the USA,  life, health, auto, and long-term disability

Q. Who regulates insurance in the USA?

In the United States of America, all the Insurance is regulated by individual states, rather than by the federal government. The National Association of Insurance Commissioners (NAIC) is led by the insurance commissioners of the 50 states, plus Washington, D.C., and five U.S. territories.

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