2.1.1 Offer and Acceptance
Offer and acceptance is completed when a premium payment accompanies the offer made by the proposed insured or applicant and the insurer accepts the offer. Typically, the effective date of the policy would be the date the payment was accepted.
If a premium payment has accompanied the offer and the insurer rejects the offer, the insurer may make revisions (and return the premium payment) and make a counter-offer to the applicant. Then the ball's in the applicant's court to accept the terms and conditions of the counteroffer.
If the insurer accepted an offer that was not accompanied by a premium payment, and the premium payment was collected at the time the policy was delivered to the applicant, the effective date would be the date the insurer issued the policy - not the date the premium payment was made.
The effective date of a policy is the date the insurer accepts an offer by the applicant "as written."
