Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which task is an administrative responsibility of the employer as policyholder under a group life insurance plan?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The employer-policyholder administers the group plan: it maintains employee records, determines eligibility, enrolls participants, collects premiums in contributory plans, and notifies the insurer of changes such as new hires and terminations. These administrative duties are performed as an accommodation to the insurer and to the group. Underwriting guidelines, claim payments, and premium rates remain the functions of the insurer, not of the employer-policyholder, and the employer has no authority over those insurance functions.
Why the other options are wrong
- A) Underwriting guidelines are established by the insurer, not by the employer-policyholder, which administers but does not underwrite the plan.
- C) Claim payments are the insurer's obligation under the master policy; the employer does not pay death benefits to beneficiaries.
- D) Premium rates are determined by the insurer's actuaries based on the group's characteristics and experience, not by the employer.
Memory hook
The employer runs the roster and the paperwork; the insurer runs the underwriting and the claims.