Under a group long-term care insurance plan, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
In group insurance, the master contract is issued to the employer, association, or other group sponsor, and each covered individual receives a certificate that summarizes the coverage and evidences participation. Group LTC plans are commonly offered through employers as a voluntary benefit, with employees typically paying the full premium and choosing their own level of benefits, daily amounts, and riders. Premiums and benefits can vary among members based on age, benefit choices, and health underwriting, even within the same group. The master-contract and certificate structure is the defining feature of group LTC coverage, and individual underwriting still applies in many employer-sponsored voluntary plans.
Why the other options are wrong
- B) The master contract is held by the group sponsor, not by each individual employee; individuals receive certificates.
- C) Group members can choose different benefit levels and riders, so coverage and premiums vary by election.
- D) Employers are a primary distribution channel for group LTC coverage, especially as a voluntary payroll-deduction benefit.
Memory hook
Group LTC: the sponsor holds the master, you hold the certificate.