Insurance Exam – Chapter 12_ Group Health Insurance Study Guide & Practice Questions Page 1 2026-04-01
Insurance Exam – Chapter
12: Group Health Insurance
Study Guide & Practice
Questions
1 of 25 Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_ 1 Insurance Exam – Chapter 12_ Group Health Insurance Study Guide & Practice Questions.pdf
,Insurance Exam CH 12 Group Health Insurance Page 2 2026-04-01
A(n) _________________ is issued to the sponsor of the B Master Policy
group, and employees receive an outline of *A master policy is issued to the group sponsor while a certificate of
coverage or other summary of benefits, which offers insurance or policy summary is issued to the employees.
information about the plan's major benefits and
principal exclusions.
A Certificate of authority
B Master policy
C Certificate of insurance
D Individual policy
2 of 25 2 Insurance Exam CH 12 Group Health Insurance.pdf
, Insurance Exam CH 12 Group Health Insurance Page 3 2026-04-01
Multiple Employer Trusts (METs) Entities formed by unrelated businesses in the same or related industrial
classification. The trust is organized under a third-party administrator (TPA)
or sponsor and allows for small to medium-sized employers to combine
their employees into a single, larger group in order to obtain more
favorable life and health insurance premiums and increased benefits.
Characteristics include:
-The sponsor or TPA develops the plan, sets the participation rules, and
administers the plan
-Due to the smaller size of the individual companies participating in the
Trust, group health coverage is almost always fully insured and backed by
an insurance company
-The Trust gets the Master Policy
Multi-Employer Welfare Associations (MEWAs) Generally formed by larger employers for the purpose of obtaining more
favorable rates for life and health insurance. These groups primarily
consist of employers who self-fund their employees' health insurance
benefits. The employer assumes responsibility for providing payment of its
own employees' claims through a TPA and do not have the safety net of
the backing of an insurance company.
3 of 25 3 Insurance Exam CH 12 Group Health Insurance.pdf
Insurance Exam – Chapter
12: Group Health Insurance
Study Guide & Practice
Questions
1 of 25 Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_ 1 Insurance Exam – Chapter 12_ Group Health Insurance Study Guide & Practice Questions.pdf
,Insurance Exam CH 12 Group Health Insurance Page 2 2026-04-01
A(n) _________________ is issued to the sponsor of the B Master Policy
group, and employees receive an outline of *A master policy is issued to the group sponsor while a certificate of
coverage or other summary of benefits, which offers insurance or policy summary is issued to the employees.
information about the plan's major benefits and
principal exclusions.
A Certificate of authority
B Master policy
C Certificate of insurance
D Individual policy
2 of 25 2 Insurance Exam CH 12 Group Health Insurance.pdf
, Insurance Exam CH 12 Group Health Insurance Page 3 2026-04-01
Multiple Employer Trusts (METs) Entities formed by unrelated businesses in the same or related industrial
classification. The trust is organized under a third-party administrator (TPA)
or sponsor and allows for small to medium-sized employers to combine
their employees into a single, larger group in order to obtain more
favorable life and health insurance premiums and increased benefits.
Characteristics include:
-The sponsor or TPA develops the plan, sets the participation rules, and
administers the plan
-Due to the smaller size of the individual companies participating in the
Trust, group health coverage is almost always fully insured and backed by
an insurance company
-The Trust gets the Master Policy
Multi-Employer Welfare Associations (MEWAs) Generally formed by larger employers for the purpose of obtaining more
favorable rates for life and health insurance. These groups primarily
consist of employers who self-fund their employees' health insurance
benefits. The employer assumes responsibility for providing payment of its
own employees' claims through a TPA and do not have the safety net of
the backing of an insurance company.
3 of 25 3 Insurance Exam CH 12 Group Health Insurance.pdf
