1. Act of creating a group health benefits program for coverage to a limited number of eligible employees or to give different types of benefits to different categories of workers (e.g., exempt or nonexempt, union or nonunion, hourly or salaried). 2. Act of an insurance company dividing its general account investments into separate parts that match each of the insurer’s major lines of business (e.g., account for group life insurance investments, account for individual life insurance investments).
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See: Cluster Policy.