Acceptance
What Does Acceptance Mean?
Acceptance occurs when two parties agree to the terms of a contract, and the process of fulfilling the contract begins. In the context of insurance, acceptance typically takes place when the insurer reviews the prospective policyholder’s offer and issues a policy. In some cases, acceptance does not commence until the first premium payment is made.
Insuranceopedia Explains Acceptance
Acceptance essentially signifies that both the insurer and the insured agree to the terms of the insurance contract. Once acceptance occurs, coverage begins and continues as long as the policyholder pays the premiums. In some cases, the insurer may impose specific requirements before acceptance is granted. For instance, life insurance companies often require a prospective policyholder to undergo a medical examination by a doctor before granting acceptance.
