What type of insurance policy issues certificates of insurance to its insureds?

The correct answer is that group insurance policies issue certificates of insurance to their insureds. In a group insurance plan, a single policy is purchased by an organization, such as an employer, to cover multiple individuals under one contract. Each insured individual receives a certificate of insurance, which serves as proof of coverage and outlines the benefits, limitations, and rights associated with the policy.

This structure allows for more efficient administration and often results in lower premiums compared to individual policies. The certificates facilitate communication between the insurer and the insured while also streamlining the claims process, ensuring that each member understands their coverage without needing a separate policy document.

Other types of insurance mentioned, such as whole life, term life, and universal life insurance, are typically issued as individual policies. They do not issue certificates of insurance; instead, they provide policy documents directly to the insured individual, outlining their specific coverage details.