Maryland Life and Health Insurance License Practice Exam

In an employer-sponsored group accident and health plan, who receives the master contract?

1. The insurer

2. The policyholder's representative

3. The employer

4. The health department

The correct answer is: The employer

In an employer-sponsored group accident and health plan, the master contract is issued to the employer, who is considered the policyholder. This contract outlines the terms and conditions of the insurance plan and serves as the foundational document that governs the coverage provided to the employees. The employer, as the policyholder, has the authority and responsibility to ensure that the plan is enacted and to communicate the details of the coverage to the employees. While it is true that the insurer provides the coverage and the policyholder’s representative may assist in managing the plan, the master contract itself is fundamentally a contract between the insurer and the employer. The other choices, such as the health department, do not typically play a role in the issuance of the master contract in this context. Understanding the relationship between the employer and the insurance provider helps clarify why the employer is the correct recipient of the master contract in this scenario, emphasizing their role in managing group health benefits for employees.