What is the contract called that is issued to an employer for a Group Medical Insurance plan?

• A. Group Policy
• B. Master Policy
• C. Employer Contract
• D. Health Plan Agreement

Answer: (B)

In group health plans, the contract that binds the insurer and the employer is the master policy. This single document establishes the terms of coverage for the entire group, including who is eligible, what benefits are provided, how premiums are set and paid, and the insurer’s obligations to the employer. The employer acts as the policyholder, and individual employees aren’t insured directly by separate contracts. Instead, they receive certificates of insurance that evidence coverage under the master policy. This makes the master policy the correct term for the contract issued to the employer for a Group Medical Insurance plan. The other terms don’t reflect the formal agreement—the master policy is the definitive contract with the employer.