Pennsylvania Life Insurance Practice Exam

The sponsor of the plan—usually the employer or the association—owns a group life policy. In these plans, the employer purchases a master policy that covers all eligible employees and is named as the policy owner. Employees are insured under that master policy and receive certificates, but they do not own the policy themselves. The plan administrator handles enrollment and benefits administration, while the insurer issues the policy and pays claims. So, ownership sits with the employer or association.