AAERT Certified Electronic Reporter (CER) Practice Test

Who holds the insurance policy?

1. The insurer

2. The claimant

3. The insured

4. The insurance company

The correct answer is: The insured

The insured is the individual or entity that holds the insurance policy and is covered under the terms of the insurance agreement. This means that the insured is typically the policyholder who pays the premiums to the insurer in exchange for coverage against certain risks or losses. In the context of insurance, the insurer is the company or organization that provides the policy and ultimately bears the financial risk. The claimant, on the other hand, is the person who makes a claim against the insurance policy, which may or may not be the insured, depending on the situation. Consequently, the insurance company itself is synonymous with the insurer and does not personally hold the policy; instead, it offers the policy to the insured. Thus, the insured is the correct answer as they are the ones who possess the policy and have a contractual agreement with the insurer.