Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which of the following is a typical responsibility of an employer as policyowner of a group life insurance plan?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The employer, as master policyowner, administers the group plan: it selects the insurer, determines eligible classes, enrolls employees, collects premiums in contributory plans, maintains records, and distributes certificates. The insurer, not the employer, does the group underwriting. Employers must apply coverage rules consistently and without prohibited discrimination. The employer does not individually underwrite employees or guarantee the insurer's investments, and employee premium contributions are withheld from pay and remitted to the insurer.
Why the other options are wrong
- B) Group underwriting is based on the characteristics of the group, not individual medical underwriting of each employee.
- C) Employee premium contributions are remitted to the insurer, not the IRS.
- D) Investment performance is the insurer's responsibility under the master contract; the employer has no such guarantee.
Memory hook
Employer = group plan's administrator: pick the insurer, enroll the crew, keep the records.