Arizona Life and Health Practice Exam

Group insurance is designed to cover a group of individuals under a single policy, typically linked by a common characteristic such as employment at a certain organization or membership in a specific group. This type of insurance allows for the pooling of risk among members, which can lead to lower premiums and simplified administration compared to individual policies.

In group insurance, members of the organization may not need to undergo individual medical underwriting, making it more accessible for those with preexisting conditions. Coverage often extends to employees and their dependents, providing comprehensive benefits tied to their employment or membership status. This structure is distinct from life insurance, individual insurance, and universal insurance, which are usually tailored to individual policyholders without this organizational connection.