6.5.1 Franchise Life Insurance
Franchise life insurance is also called wholesale insurance and provides each covered individual with their own policy, and the employer acts merely as a "backer" or "sponsor" of the plan. The employer's responsibilities are limited to the collection of premiums (employee-paid or company-paid or a combination of the two) and the delivery of the premiums to the insurer. This type of insurance is normally used by small groups who individually do not meet the state's minimum numbers laws.
