Final answer:
Employees of XYZ will receive a A) Certificate of Insurance as part of their group term life insurance plan, which outlines their coverage terms. Insurance premiums are payments made for coverage, tailored to the risk group or averaged out if certain information is unavailable.
Step-by-step explanation:
Each employee covered under the group term life insurance plan provided by company XYZ will receive a Certificate of Insurance. This is a document that verifies they have coverage under the company's group policy, but it is not the policy itself. The certificate will outline the terms of the coverage, including any death benefits and beneficiaries. Regarding insurance premiums, these are the premium payments made to an insurance company in exchange for coverage. If an insurance company were selling life insurance separately to each group, the actuarially fair premium would be based on the specific risk group each one belongs to. If selling to the entire group without detailed information like family cancer histories, they would determine a premium reflective of the overall risk of the entire group, likely averaging the risk.