Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
As the policyholder of a group life insurance plan, the employer is generally responsible for all of the following EXCEPT:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The employer administers the plan — collecting contributions in contributory plans, keeping payroll and eligibility records, enrolling employees, and distributing certificates — but does not set the premium rates. Rates are actuarially established by the insurer based on the group's composition, mortality, and benefit amounts. The insurer underwrites and prices the group; the employer is the administrator and policyholder, not the actuary.
Why the other options are wrong
- B) Collecting employee contributions is a core administrative duty of the employer in a contributory plan.
- C) Maintaining payroll and eligibility records is an essential employer responsibility under a group master contract.
- D) Distributing certificates and enrollment materials to employees is the employer's administrative function.
Memory hook
The employer runs the paperwork; the insurer runs the numbers. Rates are the actuary's job, not the HR office's.