State RegulationsCO specificDifficulty 1/5
In a Colorado employer's group life insurance plan, who holds the master policy and what do the participating employees receive?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Group life insurance in Colorado is governed by C.R.S. § 10-7-106 and C.R.S. § 10-7-201 through 207, under which the group sponsor holds a single master policy and individual members receive certificates evidencing their coverage. The certificate tells each member what the group contract provides for them without issuing a separate policy to every participant.
Why the other options are wrong
- A) Individual policies to each member would defeat the group structure; members receive certificates, not separate contracts.
- C) The producer never holds the master policy; the policy is issued to the group sponsor, here the employer.
- D) The Division of Insurance regulates group coverage but does not hold or issue any insurance policy.
Memory hook
One master policy, many certificates.