On August 9, Albert made an application for life insurance that his agent submitted
a day later without a premium payment. On August 21, the insurer issued the
policy as applied for and on August 24, the agent delivered the policy and collected
the initial premium. On what day was the contract offer made?

August 9
August 10
August 21
August 24 - ANSWER- C. Rationale:If an applicant does not submit an initial premium with the application, the applicant is inviting the insurance company to make a contract offer. The insurer can respond by issuing a policy (the offer) that the applicant can accept by paying the premium when the policy is delivered.

All statements made by an applicant in an application for life insurance are
considered to be

warranties
affirmations
representations
declarations - ANSWER- C. Rationale:Most states require that life insurance policies contain a provision that all statements made in application be deemed representation not warranties. A representation is a statement made by the applicant that the applicant believes to be true. A warranty is a statement made by the applicant that is guaranteed to be true. If an insurance company rejects a claim on the basis of a representation, the company bears the burden of proving materiality.