South Carolina Personal Lines Practice Exam

What is another term for an insurer?

1. Assurer

2. Principal

3. Broker

4. Agent

The correct answer is: Principal

The term that correctly corresponds to "insurer" in this context is "assurer." An insurer is a company or entity that provides insurance policies and is responsible for paying claims. The term “assurer” is often used interchangeably with “insurer” in the insurance industry, as both refer to the entity that assumes the risk and promises indemnity for covered losses. The other options do not adequately represent the role of an insurer. "Principal" typically refers to the primary party in a contract or agreement, particularly in legal and financial contexts, but it does not specifically denote the function of providing insurance. "Broker" refers to an individual or firm that acts as an intermediary between clients and insurers to negotiate insurance contracts but is not an insurer itself. Similarly, an "agent" represents an insurance company and sells policies on behalf of the insurer but does not assume the risk or provide coverage directly. Therefore, the most appropriate term for an insurer is "assurer."