Definition - What does Acceptance mean?
Acceptance is when two parties agree to the terms of a contract and the process of carrying out this contract begins. In the context of insurance, acceptance generally happens when an insurer reviews a prospective policyholder's offer, and sends him or her a policy. Sometimes, acceptance doesn't begin until the first premium is paid.
Insuranceopedia explains Acceptance
Essentially, acceptance signifies that both the insurer and the insured agree to the terms of the insurance contract. After acceptance, the coverage will take place as long as the policyholder continues to pay the premiums. Sometimes, an insurer will have requirements for an insured before acceptance can be reached. For example, it is common for life insurance companies to make a prospective policyholder go through a physical examination by a doctor before they will give the person acceptance.