Group Contract

Published: | Updated: May 24, 2018

Definition - What does Group Contract mean?

A group contract is a health or life insurance contract that covers a group of people, typically employees of the same company.

Group contracts are often drafted to provide insurance to employees as part of an employment benefits package. This gives individual employees insurance coverage at discounted rates.

Insuranceopedia explains Group Contract

Unlike individual insurance contracts, the policyholder of a group insurance contract is not normally the insured. More often, they are employers who have made arrangements with an insurance company to provide insurance coverage to their employees.

Group insurance contracts can also be held by entities, such as employer associations or employer trusts. In these cases, the coverage will apply to those employed by the members of the association or trust, rather than be limited to a single company.


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