Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In group life insurance, the master contract is issued to the policyholder (usually the employer), and each covered employee receives:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Group life insurance is built around a master contract issued to the policyholder (the employer or association), while each covered employee receives a certificate of insurance describing the coverage, amount, and beneficiary provisions. Employees are not individually underwritten under group coverage, and the certificate is not a separate policy. This master-contract-and-certificate structure is a core concept of objective LIFE-II.G.1.
Why the other options are wrong
- B) Only the policyholder holds the master contract; the employee receives a certificate, not a master policy.
- C) Group insurance generally uses group underwriting of the eligible class, not individual underwriting of each employee.
- D) Group members are not owners of the insurer and receive no share of surplus from the master contract.
Memory hook
One master policy for the boss, a certificate for every worker. Big picture, small card.