Question

19 abc corp., a sporting goods manufacturing company, enters into a group annuity contract for the benefit of its employees. a group insurance agent acts on behalf of the insurance company that provides the service. abc corp. appoints a plan administrator who will be responsible for enrolling eligible employees into the plan. plan members will have the right to name a beneficiary. the parties to this group annuity contract will include
a. the plan sponsor and the covered group members.
b. the sponsoring company, the covered members, and their beneficiaries.
c. the group plan sponsor and the insurance company.
d. the plan members, the plan administrator, and the insurance company.

Explanation:

In a group annuity contract for employee benefits, the parties typically include the group plan sponsor (ABC Corp., the employer) and the insurance company (providing the annuity service). Option a misses the insurance company. Option b includes beneficiaries, but beneficiaries are not parties to the contract (they are recipients of benefits). Option d includes plan administrator (a role, not a contracting party) and plan members (who are covered, but the core contract is between sponsor and insurer). So the correct parties are the group plan sponsor and the insurance company.

Answer:

c. the group plan sponsor and the insurance company.