AD Banker Comprehensive Practice Exam

In group insurance, what serves as the evidence of a contract between the insurer and the employer or association?

1. The underwriting certificate of completion

2. The policy

3. The certificate of insurance

4. The approval certification

The correct answer is: The policy

In group insurance, the policy serves as the primary evidence of the contract between the insurer and the employer or association. The policy outlines the terms and conditions under which the insurance coverage is provided, including the benefits, limitations, and responsibilities of both parties. It acts as a legal document that defines the agreement and serves as the basis for the coverage offered to the insured members of the group. The other options, such as the underwriting certificate of completion and the approval certification, are administrative documents that may be used during the underwriting process or for regulatory purposes, but they do not represent the contractual agreement itself. The certificate of insurance, while useful for demonstrating coverage to employees or members, is essentially a summary document and does not contain the full terms of the insurance contract. Therefore, the policy is the most fundamental and relevant document that establishes and evidences the contractual relationship in group insurance.