Life Insurance Policies
Who holds the contract in a group life insurance arrangement, and what does the member receive?
Answer and explanation
Answer: A. The master policy is issued to the group sponsor, and covered members receive certificates evidencing their cover and stating its principal terms. The certificate is evidence of the insurance rather than the contract itself.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, group contract and certificate
More life insurance policies questions
- An owner wishes to move the value of an old policy into a single premium whole life contract. What preserves the deferral?
- At what premium is the individual policy issued on conversion from group cover?
- Does a level premium term policy accumulate cash value the owner may reach?
- Does the index credit on a fixed indexed life policy include dividends paid on the shares in the index?
- For how long are premiums payable under a continuous premium whole life policy?
- For what periods is level premium term commonly issued?
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