In a group health insurance context, which statement is true about the contract?

• A. It is a collection of individual contracts for each employee
• B. It is a single contract that covers all employees
• C. It requires separate policies for dependents
• D. It provides only dental coverage

Answer: (B)

In group health insurance, there is one master policy issued to the employer that covers all eligible employees. The employer is the policyholder, and each employee receives a certificate of insurance as evidence of coverage under that single contract. This explains why a single contract that covers all employees is true.

Saying there are separate contracts for each employee isn’t how group plans are structured—the master policy governs the coverage for the group. Dependents are typically included under the same plan via the certificates, not through separate policies, and a group plan isn’t limited to dental coverage—medical coverage and other benefits are commonly included.