When does acceptance usually occur in insurance contracts?

Acceptance in insurance contracts generally occurs when the insurer has evaluated and approved the application for coverage. This process includes underwriting, where the insurer assesses the risk and determines whether the application meets the company's guidelines for coverage.

Option B aligns correctly with this understanding because it highlights the crucial moment when the insurer provides approval for the application. This approval signifies that they are willing to enter into the contract and assume the risk associated with the insured party.

The other scenarios mentioned either do not reflect the formal acceptance of the policy or occur at different stages of the insurance process. Payment of the first premium may initiate coverage but does not signal the contractual acceptance itself, as the application must first be approved. Mailing the policy indicates that it has been accepted but does not represent the moment of acceptance; this is merely the issuance of the policy. Filing a claim is a post-acceptance action related to the utilization of the coverage rather than acceptance of the contract itself. Thus, the key moment of acceptance is encapsulated in the insurer’s approval of the prepaid application, making this option the correct response.