Basic contract law principles applied to insurance.
Maryland follows standard contract law elements: offer, acceptance, consideration, and legal purpose.
The first step in forming a contract is a clear and definite offer.
Evaluate each option.
A. Oral contract
A type of contract, not the proposal itself.
B. Binder
Temporary insurance coverage, not the proposal of terms.
C. Agreement
Occurs after an offer has been accepted.
D. Offer
Correct. An offer is a definite and unqualified proposal of contract terms.
Conclusion.
The correct legal term for such a proposal is an offer.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit