Group

In insurance, insureds and their dependents who work for an employer or belong to an association through which they become entitled to insurance coverage.
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Coverage of a number of individuals under one contract. The most common “group” is employees of the same employer.

Group annuity

Retirement plan that provides monthly (or quarterly, semiannual, or annual) income benefits at retirement to a group of individuals that are under a master contract usually issued to an employer. Each member of the annuity plan is given a verifying certificate.

Group contract

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 .
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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.

Group conversion

Right of an individual covered by an employer’s group insurance policy to convert to coverage under an individual insurance policy (different benefits and rates) and pay premiums directly to a health plan. Usually there is continuity of insurance, and it is not necessary for the individual to take a physical examination. This option may be made available when a person leaves the group, benefits are downgraded or terminated for a specific class, or when the group policy is terminated.