What happens after the insurer issues a policy?

When an insurer issues a policy, it signifies that the insurer has accepted the offer made by the applicant for coverage. This acceptance is a crucial step in the insurance contract process, as it creates a legal obligation between the insurer and the insured. Once the policy is issued, the terms and conditions outlined in the policy become binding for both parties, establishing the insurer's commitment to provide coverage and the insured's responsibility to pay the premiums according to the policy terms. This acceptance transforms the initial proposal for insurance into a legally enforceable contract.