What type of coverage is provided when an insurer issues a master policy to a group of individuals?

When an insurer issues a master policy to a group of individuals, the type of coverage provided is known as group coverage. This type of insurance is designed to cover multiple individuals under a single policy rather than issuing separate policies for each individual. Group coverage typically offers benefits at a reduced cost because the risk is spread across all group members, which allows for lower premiums and simplified administration.

Group coverage is commonly utilized in employer-sponsored health insurance plans, where the employer obtains the master policy and individuals receive certificates of coverage that outline their specific benefits. This structure also facilitates easier enrollment and reduces the burden of acquiring insurance for individuals within the group. It emphasizes collective risk-sharing among a large number of members, which contrasts with individual, joint, or family coverage that focuses more on singular or closely related parties.