South Carolina Insurance Practice Exam

What does a life insurance policyholder receive to confirm the policies they have purchased under a group policy?

1. Overview statement

2. Insurance binder

3. Certificate of insurance

4. Policy summary

The correct answer is: Certificate of insurance

A life insurance policyholder receives a Certificate of Insurance as confirmation of the policies they have purchased under a group policy. This document serves as proof of coverage and outlines the essential details of the insured’s benefits, including the amount of coverage, any exclusions, and the policyholder's rights. It is particularly important in group insurance arrangements, where individual members of a group may not receive physical copies of the actual insurance policy but instead receive this certificate that summarizes their coverage under the group policy. The Certificate of Insurance provides reassurance to members that they are indeed covered and can refer to the details of their coverage when needed.