State RegulationsNJ specificDifficulty 1/5
Under a group life insurance plan, who receives and holds the master policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Group life coverage is written on a master policy issued to the policyholder — the employer or association that sponsors the plan — and the contract governs the entire group. The New Jersey group life framework, beginning at N.J.S.A. 17B:27-68 and running through N.J.S.A. 17B:27-75, contemplates this policyholder-level contract structure. Individual covered members hold no part of the master policy itself; their rights are documented separately. The master-policy structure is what allows one contract to insure many lives under a single plan of benefits.
Why the other options are wrong
- B) Members do not hold the master contract; they receive separate evidence of their coverage instead.
- C) The insurer issues the master policy but the policyholder owns and holds it; the home office is not the holder.
- D) The state department regulates group coverage; it does not take custody of insurers' master policies.
Memory hook
One master policy, one owner: the sponsor holds it, the members hold certificates.