Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In a group life insurance arrangement, the contract issued to the employer (the group policyholder) is called the master contract, and each covered employee receives:
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
In group insurance, the insurer issues a master contract to the group policyholder (usually the employer). Individual employees do not receive individual policies; they receive certificates of insurance that describe the coverage, the benefits, and the conditions of the master contract. The master contract controls the rights of the parties, while the certificate is evidence of the employee's participation.
Why the other options are wrong
- B) Group coverage is not individually underwritten for each employee; the certificate documents coverage under the master contract.
- C) The insurer's annual report is a corporate disclosure, not a document issued to each covered employee.
- D) Group life coverage is typically term insurance and does not provide individual cash-value policies.
Memory hook
One master contract, many certificates. The employer holds the deed; the employees carry the summary.