What does the term "insurer" refer to in life insurance?

In life insurance, the term "insurer" specifically refers to the company that provides the life insurance coverage and is responsible for paying out the benefits to beneficiaries when a claim is made. The insurer is the entity that assumes the risk associated with the policyholders' lives and agrees to provide financial compensation, usually upon the death of the insured individual. This relationship is foundational to how insurance operates, as the insurer pools the risk of many policyholders to ensure that it can meet its obligation to pay benefits.

Other entities involved in the process—such as the individual purchasing the policy, the regulatory body overseeing the insurance industry, and the agent selling the policy—play their own crucial roles but do not fit the definition of "insurer." The buyer is the policyholder, the regulatory body ensures that the insurance industry operates within the law, and the agent acts as an intermediary facilitating the purchase of the insurance, but all of them are distinct from what is meant by the term "insurer."