What constitutes an offer in an insurance context?

In the context of insurance, an offer is established when the insurer's underwriter approves the application. This is because the underwriter's approval signifies the insurer's acceptance of the risk presented by the applicant. It forms a binding agreement since the terms of the insurance policy have been agreed upon and the applicant can expect to receive the policy as a result.

When an applicant submits an application, it is generally considered an invitation to treat rather than a formal offer. The applicant is expressing interest in obtaining coverage, but this does not create a binding contract.

The issuance of a policy by an insurer represents acceptance of the terms outlined in the application after review but does not constitute the initial offer itself. It is the culmination of the offer-acceptance process.

An agent explaining a policy to a potential applicant is an important part of the sales process, but again, it does not create an offer. The agent's role is more about providing information rather than making decisions regarding the approval of coverage.

Thus, the sequence of the underwriting process leads to a clear understanding that the insurer’s underwriter’s approval is what constitutes the official offer, establishing terms that bind both the applicant and the insurer.