A master contract and certificate of coverage are found in which type of policy?

• A. Individual
• B. Universal life
• C. Variable life
• D. Group

Answer: (D)

The key idea is how group life insurance is organized. In a group plan, the insurer issues a master contract to the employer or sponsor that covers the entire group. Each participant receives a certificate of coverage, which serves as evidence of their individual benefits under the master policy. The master contract sets the terms for the group, while the certificates detail what each person can claim.

This structure isn’t how individual policies are set up—those are standalone contracts for one person and don’t involve a master contract or certificates issued to multiple participants. Universal life and variable life are typically discussed as individual policies, not as a group arrangement with a master contract and certificates.