In a group insurance plan, who holds the master policy?

In a group insurance plan, the employer holds the master policy. This is because the group insurance is typically purchased by an organization, such as a business or a labor union, to provide coverage to its members—primarily employees. The employer is responsible for the administration of the policy and manages enrollment, benefits, and other logistical aspects of the plan.

Having the employer as the policyholder allows for a more streamlined approach to offering insurance to employees, as the employer can negotiate terms and premium rates with the insurance company based on the collective risk of the group. This structure also simplifies the claims process for employees, as they generally only need to provide proof of employment to access their benefits, rather than dealing with individualized policy paperwork.

The employee, independent broker, and insurance company do not hold the master policy, as their roles differ within the context of a group insurance plan. The employee is the insured party, the independent broker may facilitate the policy's purchase, and while the insurance company provides the coverage, it is the employer that maintains the master policy.