Connecticut Life Producer Practice exam

Who owns a group life contract?

1. The insurance agent that sold the policy

2. The employees who hold individual policies

3. The sponsor of the group, often the employer

4. The government agency overseeing the insurance

The correct answer is: The sponsor of the group, often the employer

In the context of group life insurance, the owner of the group life contract is typically the sponsor of the group, which is often the employer. This arrangement allows the employer to offer life insurance coverage as part of employee benefits. The employer is responsible for making premium payments and managing the overall policy while the individual employees receive the benefits of coverage. This structure of ownership is crucial because it provides the employer a level of control and ensures that the terms of the policy align with the employment relationship. Employees who are covered under the group policy usually do not own their policies individually; they simply hold certificates of coverage that outline their benefits and rights under the group contract. The other options do not apply as the actual ownership of the contract lies with the employer or sponsoring entity rather than an individual employee, an insurance agent, or a government agency.