When is the acceptance of Colin's quote for home contents insurance considered complete?

The acceptance of Colin's quote for home contents insurance is considered complete when a letter of acceptance is posted. In insurance practice, the acceptance of an offer is an essential aspect of forming a binding contract.

When the insurer posts the letter of acceptance, it signifies that they have agreed to the terms proposed by Colin. At this moment, the contract is legally binding on both parties, irrespective of whether Colin has received the letter or not. This rule is grounded in the "postal rule" in contract law, which states that acceptance is effective once sent, not necessarily upon being received by the other party.

While receipt of a letter of acceptance and the actual putting of the policy on risk are significant actions, they rely on the earlier posting of the acceptance to establish the contract. Confirmation from the insurer also represents important communication, but does not by itself complete the acceptance process as effectively as the posting of the letter. Thus, understanding this process highlights the importance of the timing and methods of communication in the formation of insurance contracts.