Which statement about group health insurance is true?

The statement that each employee receives a certificate of coverage is accurate because, in group health insurance, an insurer issues a master policy to the employer or group representative, but individual members (employees) do not receive a copy of the master policy. Instead, they receive a certificate of coverage that outlines their specific benefits and coverage under the group policy. This document serves as proof of insurance and provides essential information regarding the coverage details, rights, and obligations of the insured employees.

In contrast, the other statements do not accurately reflect the nature of group health insurance. The contract is not issued to the employee; it is issued to the group as a whole, typically represented by the employer. While groups can form naturally, such as through employment or membership organizations, they are not required to exist naturally for the purpose of group health insurance. Furthermore, the policyholder is the employer or group, not each individual employee, who is instead a beneficiary under the policy.