What parties are involved in group insurance plans?

The correct answer identifies the essential parties in a group insurance plan. A group insurance plan typically involves three key participants: the plan sponsor, the insurer, and the members or participants.

The plan sponsor is often an organization, such as an employer or an association, that offers the insurance coverage to a group of individuals, thereby facilitating the insurance arrangement. The insurer is the company that provides the insurance coverage, assumes the risk, and manages the claims associated with the group policy. The members or participants are the individuals covered under the policy, such as employees or members of the sponsoring organization.

Understanding these roles is critical as it reflects how group insurance works, where a collective group is covered under a single policy provided by an insurer. This arrangement often results in lower premiums for each member compared to individual policies, due to the pooling of risk and the economies of scale that group insurance offers.

The other options, while they contain some relevant terms, do not correctly outline the typical structure of participants in a group insurance context. They either miss out on one of the crucial roles or mix up the designations that do not fit the standard group insurance model.