D. a policyholder is the intended and legally supported answer. Under Hawaiʻi group life insurance law, the individual insured designates the beneficiary to receive the amount payable because of the insured's death. HRS §431:10D-213 requires group life policies to provide that death proceeds are payable to the beneficiary designated by the individual insured , subject to the policy's provisions. A spouse, child, or properly established trust can therefore be designated where legally permissible.
The critical distinction concerns the group policyholder , particularly an employer. HRS §431:10D-202 states that an employer group life policy generally insures employees for the benefit of persons other than the employer . Accordingly, the employer/policyholder ordinarily cannot be designated to receive an employee's group life death benefit.
Hawaiʻi law contains a narrow statutory exception when the employer bears the entire insurance cost and uses benefits for purchasing employer securities distributed through a qualifying retirement arrangement. That specialized exception does not change the general rule tested in this question.
The certificate holder therefore normally selects a beneficiary who is distinct from the group policyholder. This separation prevents employer-sponsored group life insurance from becoming primarily insurance for the employer's own benefit.
Reference topics: HRS §§431:10D-202 and 431:10D-213; Group Life Beneficiary Designation; Policyholder versus Insured.
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