What is the definition of Association Group?

An Association Group is a type of group that has members because of a specific affinity. For example, a group of teachers band together to form a teachers' association that will support the needs of their members, as well as protect their members from unfair labor practices. Association groups may be comprised of people with the same profession, religious organizations, a group of small businesses and trade associations. Most of these groups may offer insurance (such as group life and health insurance) as part of the membership benefits.

However, the law dictates that the association group should be formed because of a specific set of reasons, and not just for the purpose of obtaining insurance coverage for their members. This prevents antiselection.

• Premium
• Pollution Insurance
• Personal Injury Protection Coverage (PIP)
• Prime Rate
• Catastrophe Reinsurance