Which policy structure provides life insurance to a group of employees under a single master contract?

• A. Individual policy
• B. Joint policy
• C. Group policy
• D. Term policy

Answer: (C)

Group life insurance is designed so a single master contract covers many employees. The employer or sponsor is the policyowner, and each employee receives a certificate of coverage detailing their benefits under that master policy. Under this setup, underwriting and premium rates apply to the group as a whole, often with less individual underwriting. This structure distinguishes it from an individual policy (one contract per person) and from a joint policy (covers two or more lives under one policy, usually not the typical arrangement for employee groups). A term policy refers to the duration of coverage, not the way the policy is structured for a group.