What typically initiates an offer in an insurance transaction?

In insurance transactions, the initiation of an offer is most commonly marked by the applicant submitting an application to the insurer. This action signifies the applicant's desire to secure coverage and outlines the pertinent details necessary for the insurer to assess the risk. The application serves as a formal request for insurance, initiating the negotiation process.

This process reflects the fundamental principle in insurance—the application is essentially a proposal by the applicant, asking the insurer to provide coverage based on the terms specified. After the insurer evaluates the application, they can choose to accept or reject it, leading to the formation of a binding contract if accepted.

While the other options pertain to significant steps in the insurance transaction, they do not represent the initiation of the offer. For instance, when an insurer provides a quote, it is a response to an application and does not constitute the start of the offer process. An agent signing an agreement or a broker negotiating terms are further along in the procedure where discussions and agreements have already taken place, rather than the initial offer stage.