Arkansas Life and Health Insurance Practice Exam 2025 - Free Life and Health Insurance Practice Questions and Study Guide

The question addresses the type of insurance policy intended to provide coverage to multiple employees under one master contract. Group life insurance is specifically designed for this purpose; it allows employers to offer life insurance benefits to their employees as part of a broader employee benefits package.

Under a group life insurance policy, the employer typically holds the master contract, while each covered employee receives individual certificates of insurance. This structure makes it efficient and cost-effective for organizations to provide life insurance coverage since premiums are usually lower than individual policies due to the group risk pool.

In contrast, individual life insurance is issued to single policyholders and does not encompass coverage for multiple employees under a single contract. Whole life and universal life insurances are types of individual policies with specific savings and investment components, catering to personal insurance needs rather than being focused on group coverage. Therefore, group life insurance is the correct answer as it aligns directly with the description provided in the question.