State RegulationsNJ specificDifficulty 2/5
An employee covered under her employer's group life plan asks what document she receives as evidence of her coverage. Which answer is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A covered group member receives a certificate of insurance — a summary document that describes the member's coverage, the plan benefits, and the member's rights, including the right to name a beneficiary. The certificate is not a policy: the binding contract remains the master policy held by the policyholder under the New Jersey group life provisions (N.J.S.A. 17B:27-68 through 17B:27-75). The certificate exists precisely so each member can see what the master contract provides without holding the contract itself.
Why the other options are wrong
- A) The master policy belongs to the policyholder; members receive certificates, not the contract.
- B) Members must be given written evidence of their coverage; the certificate fulfills that requirement.
- D) An individual policy would create a direct member-insurer contract, which is the structure group life avoids by design.
Memory hook
Employer keeps the contract, member keeps the certificate — summary, not policy.