Which of the following is NOT a responsibility of the employer under a group life insurance plan?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The employer's duties under a group life plan include paying or collecting premiums, maintaining accurate employee and beneficiary records, enrolling employees, and providing certificates and notices of coverage. Underwriting individual employees — evaluating their health and insurability — is the insurer's function, not the employer's. Group insurance generally does not require individual medical underwriting; eligibility is based on employment status and the group's characteristics. Any question about insurability belongs to the insurer and its underwriters, while the employer administers the plan.
Why the other options are wrong
- B) Premium handling — either paying the full premium or collecting employee contributions and remitting them — is a core administrative duty of the employer under the group plan.
- C) Maintaining accurate records of eligible employees, coverage amounts, and beneficiary designations is an employer responsibility under the master contract.
- D) Distributing certificates of coverage and notifying employees of their benefits under the plan are employer obligations in a group life program.
Memory hook
Employer runs the roster; the insurer runs the risk. Underwriting stays with the insurer.