Page 17 - Life Assurance

il the insurer has passed on the application. If
the insurer wishes to alter the terms of the
proposed contract, it may do so, and the
applicant may accept or reject it.

A tender of the first premium must support a
legal offer by an applicant for life insurance.
Usually, the insurance agent gives the insured a
conditional receipt, which provides that acceptance
takes place when the insurability of the applicant
has been determined. Let us say that Salah applies
for life insurance tenders an annual premium with
the application, passes the medical examination and
then is run over and killed by a truck, all before the
insurer is even aware that an application has been
made for insurance. Salah's beneficiaries may
collect under the policy if it is determined that Salah
was actually insurable at the time of the application
and had made no false statements in the
application.

An applicant for life insurance who does not
pay the first annual premium in advance has not
made a valid offer.

In summery, the offer in insurance can be
made by filling out an application and rendering
other considerations require of the applicant.

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