Which of the following statements about offer and acceptance for insurance contracts is true?

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Which of the following statements about offer and acceptance for insurance contracts is true?

A) In property and liability insurance, agents typically do not have the authority to bind coverage.
B) In life insurance, the agent can usually accept an offer by immediately binding coverage.
C) In property insurance, the offer and acceptance are usually in writing but may be oral.
D) In life insurance, the offer is merely the promise to pay the first premium.

Answer: C) In property insurance, the offer and acceptance are usually in writing but may be oral.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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