Question 36

Group life policies do not require the group to be formed specifically for insurance purposes.

In fact, while a group life policy may include a variety of organizations or groups, it is not a requirement that the group be formed solely for the purpose of obtaining insurance.

A) a master policy is issued to the company.

This statement is true. In group life insurance, a master policy is indeed issued to the organization or company that holds the policy, covering all members of the group.

B) individual insureds receive a certificate of insurance.

This statement is also true. Individual members of the group typically receive a certificate of insurance, which serves as proof of coverage under the group policy.

C) the group must contain a specified number of members.

This statement is correct as well. Group life policies usually stipulate a minimum number of members required to qualify for coverage, ensuring that the risk is spread among a sufficient number of insured individuals.

D) the group must be formed for insurance purposes.

This statement is incorrect. The group does not need to be established solely for the purpose of obtaining insurance; it can be formed for other reasons, such as employment or membership in an organization, making this the exception among the statements provided.

Conclusion

The correct answer is D because it inaccurately suggests that the formation of a group must be solely for acquiring insurance, which is not a requirement in group life policies. Options A, B, and C accurately reflect the characteristics and requirements of group life policies, while D stands out as the only false statement in this context.