6.5 Other Forms of Life Insurance
Group life insurance is typically provided by an employer to cover the employees of the company under one master policy, and employees receive a certificate of coverage. Exceptions to the master policy theme are Franchise, Blanket, and Credit life insurance.
A Multiple Employer Trust (MET) is a popular method of marketing group benefits to employers who have a small number of employees. Note that METs may be structured to provide a single type of insurance or a wide range of coverages.
A Multiple Employer Welfare Arrangement (MEWA) allows small employers to pool together to provide insurance benefits for their employees. Any plan involving more than one employer is a MEWA and is subject to licensure and regulation by the Office of Insurance Regulation. MEWAs are self-funded and employers enjoy tax exempt status. Employees covered under a MEWA are required by law to have an "employment-related bond."
(See Agent Warning, Florida study manual, Illustration 29.1, page 511.)
