Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In group life insurance, the policy is issued to the employer as the master policyowner, and each covered employee receives:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Group life insurance is structured around a single master contract issued to the group policyholder, such as an employer, union, or association. Each covered employee is not a party to the master contract but receives a certificate of insurance that summarizes the coverage, including the amount of insurance, the beneficiary designation, and important rights such as conversion. The certificate makes the employee's protection understandable and portable when employment changes, while the master contract governs the employer's relationship with the insurer.
Why the other options are wrong
- A) The employee receives a certificate, not an individual insurance contract; the master contract is the single governing agreement.
- B) An insurer's annual report is a financial disclosure to regulators and shareholders, not a group insurance document.
- C) A waiver of premium endorsement is a policy feature, not the document delivered to group members.
Memory hook
One master contract, many certificates.