Podcast
Questions and Answers
Which of the following best describes the primary function of group insurance?
Which of the following best describes the primary function of group insurance?
- To replace individual insurance policies for high-risk individuals.
- To provide insurance coverage to a collection of individuals under a single policy. (correct)
- To serve as a comprehensive financial planning tool for organizations.
- To offer specialized investment opportunities for employees.
What entities can typically be included within a group insurance plan?
What entities can typically be included within a group insurance plan?
- Employees, unions, religious groups, or alumni associations. (correct)
- Charitable organizations, community groups, or political parties.
- Fraternal organizations, sports leagues, or social clubs.
- Sole proprietorships, partnerships or corporations.
How do insurance companies utilize past claims data when assessing group insurance rates?
How do insurance companies utilize past claims data when assessing group insurance rates?
- They solely rely on past claims data to determine eligibility for group insurance.
- They disregard past claims to encourage new groups to apply for insurance.
- They review past claims as one factor to adjust rates to reflect the group's risk profile. (correct)
- They average the claims across all insured groups to create a standard rate.
Why does a larger group size typically lead to lower premiums per person in group insurance?
Why does a larger group size typically lead to lower premiums per person in group insurance?
Which factors are considered under demographic information when underwriting group insurance?
Which factors are considered under demographic information when underwriting group insurance?
Why might industries like mining or forestry be considered higher risks in group insurance underwriting?
Why might industries like mining or forestry be considered higher risks in group insurance underwriting?
What is 'adverse selection' in the context of group insurance participation?
What is 'adverse selection' in the context of group insurance participation?
Which of the following represents a key element in designing a group insurance plan's coverage?
Which of the following represents a key element in designing a group insurance plan's coverage?
What is the primary purpose of a Request for Proposal (RFP) in the context of group insurance?
What is the primary purpose of a Request for Proposal (RFP) in the context of group insurance?
Which of the following is a typical step in the RFP process for group insurance?
Which of the following is a typical step in the RFP process for group insurance?
In the RFP process for group insurance, what occurs after the proposal submission?
In the RFP process for group insurance, what occurs after the proposal submission?
In an organization, which departments are typically involved in analyzing group insurance offers?
In an organization, which departments are typically involved in analyzing group insurance offers?
Who typically has the final decision-making authority when selecting a group insurance plan for an organization?
Who typically has the final decision-making authority when selecting a group insurance plan for an organization?
What type of coverage is included in Scotiabank's core health plan?
What type of coverage is included in Scotiabank's core health plan?
Which consideration significantly impacts group insurance plans due to differing regulations?
Which consideration significantly impacts group insurance plans due to differing regulations?
What is a critical element in understanding province-to-province differences in group insurance?
What is a critical element in understanding province-to-province differences in group insurance?
What factors are considered when evaluating workers' compensation in group insurance plans across provinces?
What factors are considered when evaluating workers' compensation in group insurance plans across provinces?
What are the potential challenges when considering group insurance for employees?
What are the potential challenges when considering group insurance for employees?
Small group risks can impact what in group insurance?
Small group risks can impact what in group insurance?
FSRA oversight and taxation rules impact what in group insurance?
FSRA oversight and taxation rules impact what in group insurance?
High Market Competition impacts what in group insurance?
High Market Competition impacts what in group insurance?
What is one consideration about drug coverage in province-to-province differences?
What is one consideration about drug coverage in province-to-province differences?
Based on the Golf Canada example, what is the reimbursement amount for damaged, stolen, or lost clubs?
Based on the Golf Canada example, what is the reimbursement amount for damaged, stolen, or lost clubs?
Based on the Golf Canada example, how much coverage is included for repairing a broken window from an errant shot?
Based on the Golf Canada example, how much coverage is included for repairing a broken window from an errant shot?
Based on the Golf Canada example, how much coverage is included for golf cart related incidents?
Based on the Golf Canada example, how much coverage is included for golf cart related incidents?
Flashcards
What is Group Insurance?
What is Group Insurance?
Group insurance provides coverage to a group of individuals under a single policy.
Experience Rating
Experience Rating
Insurance firms review past group claims to set rates and do not focus on individual underwriting within group insurance.
Group Size
Group Size
A larger group size means risk is spread more evenly, leading to lower individual premiums and more negotiating power.
Demographic Factors
Demographic Factors
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Industry-Specific Risks
Industry-Specific Risks
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Participation and Adverse Selection
Participation and Adverse Selection
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Plan Design and Coverage
Plan Design and Coverage
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Adverse Selection Challenges
Adverse Selection Challenges
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Regulatory Compliance Challenges
Regulatory Compliance Challenges
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Retention Challenges
Retention Challenges
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Province to Province Differences
Province to Province Differences
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RFP (Request for Proposal) Process
RFP (Request for Proposal) Process
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Who Analyzes Group Insurance Offers?
Who Analyzes Group Insurance Offers?
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Scotiabank Group Insurance Coverages
Scotiabank Group Insurance Coverages
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Additional Group Insurance Benefits
Additional Group Insurance Benefits
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Study Notes
- Group insurance is a type of insurance that provides coverage to a group of people under a single policy.
- It can include employees, members of an association, or members of an organization
- Group insurance is not a replacement for personal insurance.
Underwriting Principles of Group Insurance
- Insurance companies assess risk and adjust rates based on the claims history of the group.
- Individual underwriting is not part of group insurance.
- A larger pool of people spreads the risk more evenly
- Larger groups allow for giving lower premiums per person and gives the group more bargaining power with the insurance company
- Factors like age, gender, family status, and location are considered
Industry Specific Risks
- Some industries, such as mining and forestry, are considered higher risk.
- Habits associated with blue-collar industries, such as smoking, can increase risk.
Participation and Adverse Selection
- Higher participation rates can result in a more balanced risk pool.
- Low participation rates may indicate adverse selection.
- Adverse selection is when mainly group members who expect to need insurance enroll in the plan.
Plan Design and Coverage
- Deductibles, co-pays, benefits, and scope of coverage are all elements of design and coverage
Challenges in Group Insurance
- Small groups have higher risk
- There is limited underwriting
- This leads to Rate Instability.
- FSRA oversight, taxation rules, employment standards act, and privacy regulations require Regulatory Compliance.
- High market competition, renew rate sensitivity, customization pressure, and claim volatility impact Retention.
Province to Province Differences
- Provincial Health Coverage Gaps exist
- There are differences in Drug Coverage and Formularies
- Workers' Compensation varies by province
Ignite Health & Dental
- Ignite Student Life provides health and dental coverage
Group Insurance Example: Golf Canada
- Up to $1,500 reimbursement is available for damaged, stolen, or lost golf clubs.
- Up to $1,500 coverage for golf cart-related incidents.
- Up to $1,000 is allocated for repairing broken windows from errant golf shots.
How Group Insurance is Sold to Companies
- The process includes RFP Issuance, Proposal Submission, Evaluation, Shortlisting, Negotiation, Selection, and Awarding the Contract.
- Departments such as Procurement, HR, and Financial Departments, along with industry experts, analyze offers
- The Chief Financial Officer (CFO) and/or Chief Human Resources Officer (CHRO) have the final say
Scotiabank Group Insurance Plan Example
- Core Health Plan (Bank Provided)
- Optional Out of Country Health Insurance
- Optional Dental Coverage
- Long Term Disability Coverage (Required - Employee paid)
- Basic Life Insurance (Bank provided)
- Optional Extra Employee Life Insurance
- Optional Accidental Death and Dismemberment
- Optional Employee Critical Illness
- Healthcare Spending / Wellbeing account ($2100 per year, Bank provided)
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