What does 'group master policy' refer to in insurance?

A 'group master policy' in insurance refers to a type of policy that provides coverage to eligible persons on a group basis. This typically involves insurance coverage provided to a group of individuals who share a common characteristic, such as employees of a company or members of an organization. The group master policy outlines the terms, conditions, and benefits for the group, allowing individuals to be insured under a single contract rather than needing separate policies for each person. This arrangement usually makes it easier and more cost-effective for individuals to obtain insurance, as the risks are pooled and the administrative process is simplified.

The focus on group coverage is significant because it means that the insurance is designed to be inclusive for all eligible members of the group, allowing for benefits that might not be achievable through individual policies. This structure encourages participation and can lead to lower premium rates due to the larger number of individuals being covered together.