Under an individual health plan, what document is issued to the insured?

• A. ID card
• B. Policy
• C. Certificate of insurance
• D. Premium receipt

Answer: (B)

The key idea is that the formal contract outlining your health coverage is the policy. In an individual health plan, the policy is the document that spells out the benefits, terms, exclusions, and obligations of both you and the insurer—the actual agreement you purchase. An ID card is provided for identifying the insured and showing that coverage exists, but it doesn’t contain the contractual terms. A certificate of insurance appears in group plans to certify coverage for employees and dependents, not as the individual contract. A premium receipt only proves that payment has been made; it isn’t the document that defines what coverage is provided. So the document issued to the insured in an individual health plan is the policy.