Beneficiaries✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In a group life insurance arrangement, the 'master policy' is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A group life insurance arrangement consists of a single master policy issued to the group policyholder - typically an employer, association, or union - and individual certificates of coverage delivered to each covered member. The certificates describe the member's benefits, but they are not separate contracts; the master policy is the contract between the insurer and the group. This structure lets the insurer cover a large group under one contract. The group policyholder administers enrollment and premiums, and covered members name their own beneficiaries.
Why the other options are wrong
- B) Employees receive certificates describing their coverage under the master policy, not separate individual policies.
- C) The application is an underwriting document submitted before coverage begins. It is not the master contract.
- D) Master policies are issued to employers, associations, labor unions, and other eligible groups, not exclusively to unions.
Memory hook
One master contract, many certificates; group coverage in a nutshell.