The correct answer is: D. Conditional acceptance
An offer is a proposal to enter into a contract. An acceptance is a communication that indicates an agreement to the terms of an offer. A counteroffer is a new offer that rejects the terms of an original offer. A conditional acceptance is an acceptance that is subject to certain conditions.
In the context of insurance, an insurer may put conditions on its offer to insure a risk. These conditions may be related to the nature of the risk, the insured’s financial situation, or the insured’s behavior. If the insured accepts the insurer’s offer subject to these conditions, then the acceptance is a conditional acceptance.
For example, an insurer may offer to insure a house against fire, but only if the house is equipped with a fire alarm system. If the insured accepts this offer, then the acceptance is conditional on the installation of the fire alarm system. If the insured does not install the fire alarm system, then the insurer is not obligated to insure the house.
Conditional acceptances are common in insurance contracts. They allow insurers to protect themselves against risks that they may not be willing to accept without certain conditions being met.