Opinion ID: 1822508
Heading Depth: 3
Heading Rank: 1

Heading: Offer

Text: ¶ 40. As discussed by the majority, this Court has explained two routes by which an offer to enter an insurance contract may be presented. Andrew Jackson Life Ins. Co., 566 So.2d at 1177-78. A potential insurer as well as potential insured may make an offer for insurance. Id. In two previous decisions this Court has found that the insurer made an offer which the potential insured accepted by submitting an application. In Andrew Jackson Life Insurance Company, an offer by the insurance company was sufficiently shown through the affirmative actions of the agents, who extended an offer of immediate coverage, gave assent on behalf of the insurer to all essential terms and expressed the agreed upon terms in writing. Andrew Jackson Life Ins. Co., 566 So.2d at 1178-79. Also, in Safety Drivers Insurance Corporation v. Waggener , this Court found that the insurer made an offer. Safety Drivers Ins. Corp. v. Waggener, 219 Miss. 372, 380-81, 68 So.2d 452 (1953). The evidence presented included documents from the insurer signed by the vice-president of the insurance company, soliciting the insured to purchase insurance and declaring all of the essential terms and conditions precedent, which the plaintiff was required to meet in order to consummate the contract. Id. at 379-80, 68 So.2d 452. ¶ 41. The Stewarts assert that Prudential, through its agent, Bateman, made the offer in the instant case. At trial the Stewarts offered evidence in the form of documentation and testimony that on August 19, 1999, Prudential's underwriter offered to insure Dr. Stewart at Select H coverage, which set the underwriting requirements. Larry testified and further offered documentation that Prudential provided the Stewarts with an illustration, dated August 19, 1999. The cover page of the illustration specifically stated: Pruco Life Variable Universal Life A Variable Life Insurance Contract An Illustration Presented to: Dr. Edsel Stewart by Jim Bateman, CLU [Chartered Life Underwriter [7] ], Registered Representative for use in the state of Mississippi The purpose of the illustration was to show how premiums' payments, loans and withdrawals made on [the Contract] may result in or affect cash values and death benefits. The contract description page specifically states:  Proposed Insured: Dr. Edsel Stewart[,] Male[,] age 73[,] Select Preferred with Ratings[,] 1,000,000 Variable Universal Life[,] Type A Death Benefit. Initial Annual Premium Outlay $105,000.00. (Emphasis added). The illustration included all of the essential terms to constitute an offer by the insurer's agent, Bateman. The illustration expressly provided that: (1) Dr. Stewart was the proposed insured; (2) the period of coverage was from his current age to his death, (3) the yearly premium was $105,000; (4) and the amount of the policy was for $1,000,000 payable upon the death of Dr. Stewart. Also, it is undisputed that the parties understood the terms contained within the illustration. ¶ 42. Prudential argues that Larry, as trustee of the Trust, merely submitted an application to Pruco, and in doing so made an offer. Prudential offered evidence that on August 23, 1999, Larry, acting as trustee, applied for a variable life insurance policy with a face amount of $1,000,000 at a premium of $100,000, which Pruco was free to accept, reject, or make a counteroffer. Moreover, Larry's trial testimony revealed that he understood that the application did not create coverage.