Master Policy Law and Legal Definition

Master policy means an insurance policy that provides coverage to eligible employees or members on a group basis. A master policy usually covers multiple persons under a group insurance plan. A group member of a master policy receives certificates as evidence of membership which summarizes on the benefits provided under the policy. It is also called as group policy.

In All States Life Ins. Co. v. Kelso, 29 Ala. App. 310 (Ala. Ct. App. 1940), tehcourtobserved that “Where master policy of group insurance contract expressly provided that provisions of certificate issued to employee, together with master policy and application therefor, should constitute the contract between the company, master policyholders and person insured, the three instruments should be construed together in ascertaining true meaning of contract.”