An insurer's issuance of a policy that differs from the application is classified as what?

When an insurer issues a policy that differs from the application, it is classified as a rejection of the applicant's offer and a counteroffer. In the context of contract law, an insurance application represents an offer from the applicant to the insurer. When the insurer issues a policy that does not align exactly with the terms of the application, it effectively means the insurer is rejecting the original offer and putting forth a new set of terms—hence, making a counteroffer.

This situation is important because it indicates that the applicant must review the policy received and either accept the new terms or consider that there is no agreement reached if the counteroffer is not accepted. In insurance practice, clarity on acceptance and counteroffers is crucial to establish valid contracts.

By contrast, the other options do not accurately reflect the legal implications of such a situation. A full acceptance implies no changes to the terms were made, while a complete legal void suggests that there was no agreement at all without addressing the counteroffer aspect. An additional offer of unrelated services does not pertain to the context of issuing an insurance policy and the terms outlined in an application.