Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In group life insurance, the contract between the insurer and the employer is known as the:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Group life insurance is issued under a single master policy (master contract) between the insurer and the group policyholder, usually the employer. Each insured employee does not receive a separate individual policy; instead, the employee receives a certificate of coverage that summarizes the master policy's terms, the amount of coverage, and the beneficiary rights. The certificate is evidence of coverage under the master contract.
Why the other options are wrong
- B) The certificate belongs to the employee; the employer holds the master policy, and individual policies are not issued to each employee.
- C) A rider is an amendment to a policy, not the document summarizing an employee's group coverage.
- D) Group life is issued on the group basis without individual policies being delivered to employees.
Memory hook
One master policy for the crowd, certificates for the individuals. The group contract is the big book, the certificate is the summary card.