Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In a group medical expense plan, the contract of insurance is issued to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
In group insurance, a single master contract is issued to the employer or other plan sponsor, who is the master policyholder. Individual employees and their dependents are not parties to the master contract; they receive certificates of coverage that summarize their benefits and rights. The employer pays premiums, often with employee contributions, and administers the plan. This master policyholder/certificate structure is a core group insurance concept.
Why the other options are wrong
- B) In group insurance, employees do not receive individual policies; coverage flows from the one master contract held by the sponsor.
- C) The state insurance department regulates insurers; it is not the policyholder for private group plans.
- D) The union may negotiate coverage, but the master policy is issued to the plan sponsor or employer, not to the union representative as the insured.
Memory hook
Group = one master policy, many certificates. The employer holds the contract; employees hold proof, not policies.