Indiana State Life and Health Insurance Practice Exam

An individual covered under a Group Life insurance policy is referred to as?

1. Annuitant

2. Policyowner

3. Certificate Holder

4. Contingent

The correct answer is: Certificate Holder

In the context of Group Life insurance, an individual who is covered under the policy is referred to as a Certificate Holder. This term specifically indicates that the individual receives a certificate of coverage that outlines the benefits provided by the Group Life insurance policy. Group policies are typically issued to an employer or another entity, and the individuals covered under these policies do not own the policy themselves but are instead beneficiaries of the coverage. The certificate serves to inform the covered individuals of their rights and benefits under the Group Life insurance plan. The other terms often refer to different roles or situations in insurance. For example, an annuitant is a person who receives periodic payments from an annuity contract. A policyowner is the individual who owns the insurance policy and holds the rights associated with it, which is typically not applicable in Group Life insurance cases where the entity (employer or association) owns the policy. A contingent refers to a secondary beneficiary who receives benefits if the primary beneficiary is unable to receive them; it does not pertain to the covered individual themselves. Thus, Certificate Holder is the most accurate description of an individual covered under a Group Life insurance policy.