- A method for an employer to provide coverage for employees when a company does not have enough employees to justify a group insurance plan. While a wholesale insurance policy will cover an entire group, each employee is written an individual policy. Also known as "franchise insurance."
Related Terms and Acronyms
- Franchise — Definition,
- The right to sell products or services under a corporate name or trade mark (established by someone else). This right is usually purchased for cash in addition to a royalty fee on, or a percentage of, all sales.
- Group Health Insurance Plan — Definition,
- Health insurance that covers a large group of people, often as part as a employee benefit package.
- Insurance (insur) — Abbreviation,
- An arrangement where one party provides financial protection to another party for specific damages or losses.
- Without Evidence of Insurability — Definition,
- Applying for insurance coverage without the insurer requiring the individual to take a medical examination.