When a proposal reaches the life
insurance company along with all the requirements the insurer underwrites the
proposal and decides to accept the proposal, with or without conditions, if the
risk offered is worth covering. If the insurer has received the first premium
(or single premium) the company issues the policy to the proposer (who will now
be known as policyholder) as an evidence of the contract. It enumerates all the
conditions and privileges of the contract. In case of annual or regular premium
policies the acceptance is a counter offer which says the company is agreeable
to cover the risk provided the policyholder pays premium to the company as
stipulated in the policy on dated mentioned therein.
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