In group medical expense insurance, the master policy is issued to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Group insurance is built around a single master policy issued to the group policyholder — the employer, union, or association — while each covered member receives a certificate describing the benefits and the person's rights under the plan. The certificate is evidence of coverage but is not the insurance contract itself; the master policy governs the relationship. Employees typically do not hold the master contract, and neither the state nor the producer is the policyholder. If the master policy is terminated, the insurer must comply with group continuation and conversion rights so that covered members are not left without protection. The certificate also explains the member's rights under COBRA or Cal-COBRA when eligibility ends.
Why the other options are wrong
- B) Individual employees receive certificates, not master policies; the master contract belongs to the group policyholder.
- C) The state insurance department regulates and licenses the insurer but is never the policyholder of a group plan.
- D) The producer acts as the agent placing the coverage; the master policy is not issued to the producer.
Memory hook
One master key (policy) for the employer; everyone else gets a certificate copy.