Who typically makes the offer in an insurance contract?

In an insurance contract, the applicant, who is the person seeking insurance coverage, typically makes the offer. This occurs when the applicant submits an application for insurance along with the necessary premium payment. By doing this, the applicant expresses their intention to enter into a contract with the insurer under specified terms.

The applicant provides details that the insurer uses to assess risk and determine whether to accept the offer. The insurer then evaluates the application and has the option to accept the offer, possibly with adjustments to the terms, or to decline it. This sequence reflects the mutual agreement process inherent in contract law, where one party makes an offer and the other party has the discretion to accept or reject it.

Understanding this dynamic is crucial in the insurance industry as it clarifies the roles and responsibilities of both the applicant and the insurer within the contract negotiation process.