Who is referred to as the person applying for an insurance policy?

Prepare for the Virginia Health Insurance Exam. Utilize flashcards and multiple choice questions, each with hints and explanations, to boost your knowledge. Get exam-ready today!

The term used to describe the individual who is applying for an insurance policy is "Applicant." This designation is important as it identifies the person who seeks to enter into a contractual agreement with the insurance company. The applicant is responsible for providing necessary information on the application, which helps the insurer assess the risk and determine the terms and premium of the policy.

Understanding the role of the applicant is crucial because they are typically the one who will provide personal details, financial information, and any relevant health history that the insurer needs to evaluate when considering coverage. If the application is approved, the applicant then becomes the policyholder, but the key distinction here is that the applicant is the initial seeker of the insurance coverage itself.

In contrast, the other terms referenced have specific meanings in the context of insurance. An agent is a representative of the insurance company who facilitates the sale of policies, while an obligor refers to a party obligated to perform a contractual duty, not specifically linked to the initial application process. The term "policyholder" describes the individual who holds the insurance policy after approval, which may not necessarily be the same person who applied. Thus, "Applicant" is the correct term for the person taking the initial step in securing insurance coverage.

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