Connecticut Life Producer Practice exam

What do employees receive under a group life insurance contract?

1. A master policy or contract

2. A share in the profits of the policy

3. A certificate of insurance

4. An individual life insurance policy

The correct answer is: A certificate of insurance

Under a group life insurance contract, employees typically receive a certificate of insurance. This certificate serves as an official document that outlines the coverage provided to the employee under the group policy, including the amount of insurance they are entitled to, the policyholder’s details (often the employer), and information about how to file a claim. The certificate of insurance is crucial because it summarizes the benefits each employee receives without making them responsible for managing a separate life insurance policy. Instead, the group policy is administered by the employer, who manages the terms and coverage collectively for all participating employees. The other options highlight elements related to life insurance, but they do not represent what the individual employee actually receives under a group life insurance contract. A master policy is held by the employer, not the employees. Profit-sharing is typically not a feature of standard group life insurance, as it is meant to provide benefits rather than earnings. An individual life insurance policy represents a personal policy purchased by an individual, which is not the case in group insurance contexts where coverage is provided collectively.