What type of coverage is characterized by the insurer issuing a master policy to a group and providing individual certificates of insurance?

The type of coverage characterized by the insurer issuing a master policy to a group and providing individual certificates of insurance is known as group coverage. This arrangement benefits both the insurer and the insured. In group coverage, a single policy covers a group of individuals, such as employees of a company or members of an organization, under one master policy. Each individual within the group receives a certificate of insurance that outlines their specific coverage details.

Group coverage is valuable because it allows for simplified administration and often results in lower premiums compared to individual policies. It also allows for easier access to insurance for individuals who might have difficulty obtaining coverage on their own due to health or other factors. This setup fosters a sense of community and collective risk management among the insured members.

In contrast, individual coverage would involve separate policies for each person, which does not leverage the collective nature that group coverage provides. Universal coverage typically refers to comprehensive health care access and is not relevant in this context, while term coverage defines a specific duration for insurance protection rather than the group dynamic.