Glossary

A group captive is a captive that insures the risks of a heterogeneous or homogeneous group of unrelated insureds. This could be a stock captive, a mutual captive, or a reciprocal. In the case of a stock captive, shares could be owned by some or all of the insureds, or by non-insureds, subject to the captive domicile's license classification.

A group certificate is a document provided to each member of a group plan showing the benefits provided under the contract.

A group contract is a contract provided to the employer detailing coverage under a group plan.

Group credit insurance refers to coverage a creditor may buy on the life or health of debtors to pay the debt in case of disability or death.

Group disability insurance refers to a disability insurance program that covers members of a natural group, such as employees of a business or members of a union, association, or employer group. A group master disability insurance policy is issued to the plan sponsor, and each qualifying employee is issued a certificate to the master policy, covering the participant's lost wages due to an illness or accident, subject to a maximum monthly payment. Group disability insurance plans usually cost less for participants than individual plans that offer the same benefits.

Group health insurance describes a health insurance program that covers members of a natural group, such as employees of a business or members of a union, association, or employer group. A group health insurance plan offers uniform coverage for all employees or members of the group. Generally, each employee or member of a group health insurance plan is responsible for an annual deductible and some coinsurance portions of medical costs incurred, unless the plan uses a health maintenance organization (HMO) or preferred provider organization (PPO). Group health insurance plans usually cost less for participants than individual plans that offer the same benefits.

Group insurance is insurance provided to groups of people. It involves the substitution of group selection, the use of experience rating, and the use of a master insurance contract. These aspects of group insurance yield lower administrative costs than would individual policies written for members of the group. Group insurance is commonly used to provide employees and members of associations with life, health, disability, dental, and similar types of coverage.

Group life insurance refers to a life insurance program that covers members of a natural group, such as employees of a business or members of a union, association, or employer group. A group life insurance plan usually offers annual renewable term life insurance policies, but some plans provide permanent life insurance policies. Group life insurance plans usually do not require physical examinations and cost less for participants than individual plans that offer the same benefits.

A group of companies refers to insurance companies affiliated with others under the same management.

Group permanent life insurance refers to a group life insurance plan where participants may choose permanent life insurance coverage in addition to or instead of term life insurance. Under a group permanent life insurance plan, the participants have a vested interest in the increments of paid-up insurance purchased.