Pete is covered by a group health insurance plan which covers employees in multiple states. This plan is governed by the laws of which state?

The correct answer is that a group health insurance plan, particularly one that covers employees in multiple states, is governed by the laws of the state where the master contract was issued.

This is because the master contract, which typically outlines the terms and conditions of the group health insurance policy, serves as the foundational legal document for the entire plan. The legal jurisdiction of the master contract is crucial in determining regulatory compliance and handling disputes, as it reflects the agreements made between the insurer and the employer sponsoring the plan.

When a group policy is established, it is formalized in a specific state, and the laws of that state will define the rights and obligations of the parties involved, even if covered individuals are scattered across various states. The location of the master contract ensures uniformity in terms of regulation, making it easier to manage claims, enforcement, and any legal matters that may arise.

Other options point to factors such as the location of the certificate of coverage, the residency of most employees, or the insurer’s home office, none of which hold the same legal significance as the jurisdiction established by the master contract. These elements may influence administrative processes but do not determine the governing law of the insurance agreement itself.