By Ralph H. Blanchard
Group insurance, in its typical form, insures the lives of a group of employees
under a blanket policy, at a reduced rate of premium, and without individual
medical examination. The earliest known application of this plan was the writing
of a group policy by the first chartered American life-insurance company on
seven hundred coolies during their transportation from China to Panama. Present-day
group insurance, however, is still in the earliest stages of its development,
the New York Insurance Department having issued its first approval of a policy
form in February, 1911. Group business is at present written by only a small
number of companies, but it is probable that its volume will increase very considerably
in the near future.1 Since this form of insurance is somewhat experimental in
nature and in no sense standardized, any definition or description must be qualified
in its application to particular cases. In the following pages are pointed out
the essential principles of this type of insurance ; the practical working out
of these principles will vary from one company to another.
Sections in Chapter 23.