Insurance Broker Certification Practice Exam

Which term refers to the party who issued the insurance policy?

1. Applicant

2. Insurer

3. Broker

4. Policy owner

The correct answer is: Insurer

The term that refers to the party who issued the insurance policy is "insurer." The insurer is the company or entity that provides the insurance coverage and is responsible for fulfilling the terms of the insurance contract. This includes collecting premiums and paying claims, as stipulated in the policy. The insurer is central to the relationship established through the insurance contract, as they assume the risk in exchange for the premium paid by the insured party. In contrast, the applicant is the individual or entity seeking insurance coverage, while the broker acts as an intermediary who facilitates the connection between the applicant and the insurer. The policy owner is the person or entity who holds the insurance policy, which could be the applicant, but does not specifically denote the issuer of the policy. Therefore, the correct identification of the insurer is fundamental for understanding the insurance process and the roles involved in it.