Life & Health Insurance Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

The common term used for the party who creates an insurance policy is the insurer. The insurer is the entity, typically an insurance company, that assumes the risk and provides coverage to the policyholder in exchange for premium payments. This party is responsible for evaluating risks, determining policy terms, and fulfilling the contractual obligations outlined in the policy, such as paying claims.

In contrast, other roles such as a broker or an agent serve important functions within the insurance industry, but they do not create the policy themselves. A broker acts as an intermediary between clients and insurers, helping clients find the best coverage options without being tied to a single insurer, while an agent works on behalf of a specific insurer to sell policies and assist policyholders. The term "assured" generally refers to the individual or entity receiving the coverage, rather than the one creating the policy. Therefore, the insurer is the correct answer in this context.