Final answer:
The master contract pertains to an agreement for group insurance provided by an employer to employees, where employees get certificates of insurance as proof of coverage. Such frameworks allow for collective bargaining power, reducing costs for coverage under employment-based private insurance. The employer mandate may require employers to provide such insurance, especially if they exceed a certain number of employees.
Step-by-step explanation:
A master contract is an agreement between an insurer and an employer wherein the insurer provides group insurance to the employer's employees. The employees, in turn, receive certificates of insurance which are evidence of their coverage under the master contract.
This setup is common in employment-based insurance, which is a form of private insurance where the coverage is provided in whole or in part by an employer. Employers with more than 50 employees are often mandated by law, under the employer mandate, to offer health insurance.
With such arrangements, businesses can leverage their size to negotiate with providers for lower rates, which is beneficial to both the insured individuals and the insurer.
Occupational licenses are somewhat related but not direct components of the insurance process; they indicate a person's qualifications in their field. Premiums are the payment made by the employees or employer to the insurance company in exchange for coverage.
A risk group refers to the employees who share roughly the same risks and hence can be covered under one master policy. Service contracts and warranties are not directly related to employment-based insurance but are agreements where sellers promise to repair or replace products, which can sometimes resemble insurance in their function.