Type of managed care plan (HMO) that contracts with one or more medical groups to give medical services to members. Usually all services, except hospital care, are provided under one roof and physicians share equipment, records, and personnel. Physicians are paid a predetermined per member, per month amount called capitation . From the capitation fund, the physicians’ group pays its own physician members according to a prearranged schedule such as salary plus incentives. Also known as a prepaid group practice plan . Also see staff model .

Total amount of monthly premiums billed at a specific time to cover all outstanding group insurance.

Designated title under which a group is enrolled in an insurance plan.

Number assigned to a group insurance plan that identifies the employer or specific insured group. It appears on each member’s identification card and is used when submitting an insurance claim to the insurance company for payment. Also called group insurance number, employer number, G-number, case number, file number, account number , and company code number .

Type of group permanent life insurance that has premiums based on issue age. It accumulates and builds reserves and cash surrender values.

Type of group permanent life insurance in which the employee’s contributions are used to purchase paid-up insurance. The employer’s contributions are used to purchase term insurance. The employees’ insurance coverage remains level each year. As the amount of paid-up insurance increases over time, the amount of term insurance that the employer purchases to make up the difference decreases. This type of life insurance has a cash surrender value.

Type of life insurance that builds cash value and is composed of a group. It may be used to fund a group pension plan or to provide life insurance coverage that will continue after retirement.

Individual or company in whose name a group insurance policy is written. Also called group policy owner .