Under California Insurance Code Section 10270.5, each employee insured under a group disability master policy must receive:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10270.5(c) establishes the two-document architecture of group disability insurance: coverage is written under a master policy issued to the employer or other policyholder, and each insured employee receives an individual certificate that sets forth the benefits, exceptions, and a reference to the master policy. The certificate is the employee's proof of coverage and describes the benefit structure, while the master contract remains the controlling document. California also requires certificate forms to be submitted to and approved by the Insurance Commissioner before use, reinforcing the statutory protection of the insured individual.
Why the other options are wrong
- B) The employee receives a certificate, not the full master policy; the master policy is issued to and held by the employer or policyholder, so this answer misallocates the two documents.
- C) Group insurance is not a stack of individual policies; the master policy plus certificate structure is the defining group model, so no individual policy is issued in the employee's own name.
- D) A certificate must be issued and delivered; coverage is not left undocumented until a claim is filed, so the 'no documentation' answer is directly contrary to the statute.
Memory hook
Group coverage = one master policy up top, a certificate in every employee's hand. The certificate is the promise in writing.