Question
- In a standard insurance sales transaction involving an applicant, a producer, and an
insurance company, which party is the offeree?
a. applicant
b. beneficiary
c. insurer
d. producer
insurance company, which party is the offeree?
a. applicant
b. beneficiary
c. insurer
d. producer
Ask by Perkins Tyler. in the United States
Mar 27,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The applicant is the offeree in the insurance transaction.
Solution
-
The key to determining the offeree in any contract is to identify which party receives an offer and is expected to accept it.
-
In a standard insurance sales transaction:
- The insurance company is the one that offers an insurance policy by proposing terms, conditions, and coverage.
- The applicant, who seeks insurance coverage, receives this offer.
-
When the applicant decides to obtain the insurance, their application is considered as acceptance of the insurance company’s offer.
-
Therefore, the offeree—in other words, the party to whom the offer is made—is the applicant.
The correct answer is:
a. applicant
a. applicant
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
In a standard insurance sales transaction, the insurer © is typically considered the offeree. This is because the applicant makes an offer to the insurer by submitting an application for insurance coverage, while the insurer evaluates the risk and decides whether to accept the application, which constitutes their acceptance of the offer.
Additionally, the role of each party is crucial in shaping the overall process. Producers act as intermediaries, helping applicants navigate the complexities of various policies, while beneficiaries are the parties who stand to gain from the insurance coverage. Understanding these roles streamlines the transaction and ensures everyone is on the same page!
