Insurance agreement made with an employer or other entity that gives insurance coverage and benefits to employees and their dependents under a single policy. It is issued for 12 months to the employer with individual certificates given to each insured individual or family and it may be renewed annually. Under the Health Insurance Portability and Accountability Act (HIPAA), insurance portability is tied to employer-group plans in which an employee changes jobs. Also called group policy .
***
A contract of insurance made with an employer or other entity that covers a group of persons identified by reference to their relationship to the entity buying the contract. The group contractual arrangement is generally used to cover employees of a common employer, members of a trade association of trusteeship, members of a welfare or employee benefit association, members of a labor union, or members of a professional or other association not formed only for the purpose of obtaining insurance.