All of the following statements regarding group health insurance are true except?

In group health insurance, coverage is provided to a collective group, such as employees of a company or members of an organization, rather than to individuals. A master contract is issued to the group as a whole, detailing the terms of coverage. One significant aspect of group coverage is that rather than issuing individual policies for each member of the group, group health insurance typically provides insurance through a single master policy.

The members receive certificates of coverage instead of individual policies, which summarize the benefits they are entitled to under the master contract. This structure simplifies administration and often leads to cost savings. Therefore, stating that an individual policy is given to each member does not accurately reflect how group health insurance operates and is not true in this context.

Other statements, such as premiums being determined by the claims experience of the group, the issuance of a master contract, and lower premiums compared to individual health insurance, accurately depict important features of group health insurance. Group plans are generally more cost-effective due to the larger risk pool and lower administrative costs, which explains why the premium rates are usually lower than those found in individual plans.