If a property insurance agent knocks on the door of I.M. Covered, explains the contract, and receives a check

Question

Question: If a property insurance agent knocks on the door of I.M. Covered, explains the contract, and receives a check for the policy that is cashed the following day. Which one of the following most closely has occurred?

Options:

1.  Offer, acceptance, consideration
2.  Offer, counter offer, acceptance
3.  Offer, consideration, subrogation
4.  Offer, acceptance
5.  Rejection, dejection, ejection

Answer 1

1. Offer, acceptance, consideration

If a property insurance agent knocks on the door of I.M. Covered, explains the contract, and receives a check for the policy that is cashed the following day.

"Offer, acceptance, consideration" has occurred.