South Carolina Insurance Practice Exam

What document does an insurer issue to the policyowner for delivery to each insured person under a group life policy?

1. Policy declaration

2. Individual certificate

3. Group master policy

4. Insurance endorsement

The correct answer is: Individual certificate

The document issued to the policyowner for delivery to each insured person under a group life policy is the individual certificate. This certificate serves as proof of coverage for each member of the group and outlines the benefits and terms of the policy as they apply to the individual. The individual certificate is essential because it acts as a personalized document confirming that a particular individual is covered under the group policy, providing information about the conditions of their insurance, and detailing the coverage amounts. In contrast, the group master policy is a single, comprehensive document that outlines the terms and conditions of the group insurance plan as a whole, typically held by the policyowner or the employer. While the policy declaration may contain summary information about the policy, it doesn't serve the purpose of individual coverage documentation. An insurance endorsement is an amendment to the policy and does not specifically pertain to the issuance of coverage verification to individual insureds in a group setting.