Insurance Broker Certification Practice Exam

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Prepare for the Insurance Broker Certification Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary function of the insurer?

To evaluate insurance claims
To issue insurance policies
To train insurance agents
To manage insurance funds

The correct answer is: To issue insurance policies

The primary function of the insurer is to issue insurance policies. This process involves underwriting risks, determining coverage terms, and setting premiums in order to provide protection against specified risks to policyholders. When an insurer issues a policy, it formalizes the agreement to provide financial assistance or compensation in the event of a covered loss, thereby fulfilling its central role in the insurance market. While evaluating insurance claims, training insurance agents, and managing insurance funds are important responsibilities within the insurance industry, they support the primary function of providing policies. Issuing policies is where the relationship with the policyholders begins, establishing the insurer's commitment to provide the coverage agreed upon.