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Eligible groups
| Question | Answer |
|---|---|
| Eligible group rule | group must be formed for a purpose other than obtaining group insurance |
| Group insurance eligibility | limited to specific approved group types |
| Employer group plan | group insurance plan sponsored for employees |
| Employee group plan | another name for an employer group plan |
| Multiple employer trust (MET) | trust made up of multiple small employers in the same or similar industries to provide life insurance or other benefits for employees while gaining tax benefits |
| Labor union plan | group insurance sponsored by two or more labor unions for their collective members |
| Taft-Hartley trust | trust under which labor union plans are sponsored |
| Association group plan | group insurance sponsored by a trade, professional, or other association for its members |
| Group credit life insurance | group life insurance sponsored by a lender or creditor for a group of debtors |
| Group credit insurance beneficiary | the sponsoring group is the beneficiary |
| group credit insurance coverage amount | limited to each insured debtor’s remaining debt balance |
| Single employer sponsored group | one employer sponsoring group insurance for employees |
| Professional association group | association-sponsored group made up of professionals or trade members |
| Trade association group | association-sponsored group made up of members in a trade |
| Contributory group plan | group insurance plan in which employees share the premium cost usually needs 75% participation |
| Noncontributory Group plan | group insurance plan in which the employer pays the full premium |
| Contributory participation requirement | 75 percent of eligible employees must participate |
| Noncontributory participation requirement | 100 percent of eligible employees must participate |
| Master Policy | group insurance policy issued to the employer or sponsoring group |
| Master policy owner | employer or sponsoring group that holds the group policy |
| Certificate of insurance | document given to each covered individual as proof of group insurance coverage |
| Group underwriting | underwriting based on the characteristics of the group rather than individual medical underwriting |
| Group insurance underwriting | generally does not require stringent medical underwriting for each individual |
| Eligibility requirements | conditions a person must meet before joining a group plan |