Which entity issues an insurance policy?

Which entity issues an insurance policy?

• A. Insurer
• B. Agent
• C. Broker
• D. Policyowner

Answer: (A)

The insurer is the entity that issues an insurance policy. The insurance company underwriting the risk drafts and provides the policy contract, which lays out what’s covered, the limits, premiums, and terms. An agent sells policies on behalf of the insurer, and a broker represents the insured in obtaining coverage; the policyowner is the person who owns the policy and pays premiums. They may facilitate or obtain coverage, but the actual policy document comes from the insurer.

The insurer is the entity that issues an insurance policy. The insurance company underwriting the risk drafts and provides the policy contract, which lays out what’s covered, the limits, premiums, and terms. An agent sells policies on behalf of the insurer, and a broker represents the insured in obtaining coverage; the policyowner is the person who owns the policy and pays premiums. They may facilitate or obtain coverage, but the actual policy document comes from the insurer.