Master Policy

The employer holds the master policy, and each insured employee receives a certificate describing the coverage — In group life insurance, the insurer issues a master policy to the group policyholder, typically the employer or association, and that master policy is the actual contract between the insurer and the group policyholder. Each covered employee receives a certificate of coverage that summarizes the benefits, conditions, and the employee's rights under the master policy. The certificate is evidence of coverage, not a separate contract, and its terms are governed by the master policy. The group structure allows many individuals to be covered under one contract.

National insurance concept

It is evidence of the employee's coverage under the master policy, but it is not itself the insurance contract — In group life insurance, the master policy is the single contract between the insurer and the group policyholder, usually the employer. Each covered employee receives a certificate that summarizes the benefits, beneficiary designation, and conversion rights; the certificate is evidence of coverage, not a contract, and the employee is not a party to the master contract. The employer holds the contract and administers the plan, while the certificate simply documents the benefits to which the employee is entitled.

National insurance concept