Maryland Life and Health Insurance License Practice Exam

What is issued to employees of an employer-sponsored health plan?

1. A policy document

2. A certificate

3. A summary plan description

4. A rider

The correct answer is: A certificate

In an employer-sponsored health plan, employees typically receive a certificate, which serves as proof of coverage under the group health insurance policy. This certificate outlines the benefits available to the employee and may also provide important details such as coverage limits, exclusions, and how to file claims. By issuing a certificate, the employer confirms that the employee is a participant in the health plan, ensuring that they have access to medical services and benefits outlined in the group's policy. In contrast, a policy document is a comprehensive record of the insurance contract between the insurer and the employer but is not provided to employees individually. A summary plan description offers an overview of the benefits and features of the plan, but the certificate acts as the formal acknowledgment of an employee's coverage. A rider refers to an amendment or addition to the policy, which is also not distributed as part of the employee's initial documentation.