What term describes the agreement that insurance applications serve as an invitation for the insurer to make an offer?

The correct term that describes the agreement where insurance applications serve as an invitation for the insurer to make an offer is "Conditional Offer." In insurance terminology, an insurance application is considered a request for coverage which initiates the process. When a potential policyholder submits an application, they are not immediately entering into a contract. Instead, they are inviting the insurer to assess their risk and determine whether to extend an offer of insurance based on the information provided.

A conditional offer means that the offer from the insurer is contingent upon certain conditions being met—typically the underwriting process. The insurer will evaluate the application, and if they choose to proceed based on that underwriting assessment, they can extend an offer that may lead to a binding contract once the applicant agrees to the terms and pays the premium.

In this context, the other choices do not accurately represent the nature of the insurance application process. For example, while "Premium" refers to the cost of the insurance coverage, it does not describe the status of the application as an invitation to offer. "Contract of Adhesion" pertains to contracts offered by one party where the terms are set and the other party has little or no ability to negotiate, and this does not apply directly to the notion of the application as an invitation