Group Life & AnnuitiesQuestion 102 of 315
Under a group life insurance plan sponsored by an employer, who holds the master contract and who receives a certificate of insurance?
a.Each employee holds the master contract; the employer receives the certificate
b.The employer holds the master contract; each covered employee receives a certificate of insurance
c.Both employer and employees hold copies of the master contract
d.The insurer holds the master contract; the employer receives the certificate
Explanation
In group life insurance the sponsoring employer (or association) is the policyowner and holds the single master contract. Each insured employee receives only a certificate of insurance summarizing coverage, beneficiary, and conversion rights.
Law Reference: Cal. Ins. Code §10202Practice all 315 questions free — no signup required.
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