Which of the following best describes a master policy in group health insurance?

• A. A policy covering a single individual
• B. A policy issued to the employer covering all eligible employees
• C. A rider attached to an individual policy
• D. A temporary coverage policy

Answer: (B)

In group health insurance, the master policy is the contract issued to the employer (the policyholder) that provides coverage for all eligible employees under the plan. It sets the plan’s terms, benefits, deductibles, and limits for the group as a whole. Individual employees aren’t issued separate policies; instead, they receive certificates of insurance that outline their specific benefits under the master policy. A rider attached to an individual policy or a temporary coverage policy doesn’t represent the master policy.