New York State Life Insurance Exam Questions Practice Question
All of the following are true concerning group life policies EXCEPT
Correct Answer: D
Rationale: Group life policies are designed for organizations, not solely for insurance purposes. A master policy is issued to the company (A), and individual insureds receive a certificate of insurance (B), both of which are standard practices in group insurance. Option C is also true, as most group policies require a minimum number of members to spread risk effectively. However, option D is incorrect because groups can be formed for various reasons, such as employment or association, rather than exclusively for insurance coverage.
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