Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In a group life insurance plan, the contract of insurance is issued to 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 master contract held by the group policyholder, typically the employer. Each covered employee receives a certificate of insurance that summarizes the coverage rather than an individual policy. The employer selects the plan, pays or shares the premiums, and administers enrollment, while the insurer is liable under the master contract. Employees generally are not individually underwritten, and the premium reflects the group's characteristics.
Why the other options are wrong
- B) Employees do not hold individual master policies; one master contract covers the entire group.
- C) The agent does not hold the policy; the agent services the account.
- D) The insurer issues the policy, and the beneficiary relationship is between the plan and the insureds, not the carrier's office.
Memory hook
Group life = one master contract, many certificates. The employer holds the keys.