What type of group is eligible for group insurance coverage?

Group insurance typically covers groups that are organized for a purpose that unites them beyond the mere acquisition of insurance. These groups usually share a common interest, having a reason for their formation such as employment, membership in an organization, or other shared goals, which makes them eligible for group insurance. This requirement helps maintain the integrity and purpose of group insurance, allowing insurers to manage risk more effectively due to the known characteristics of the group members.

In contrast, groups solely formed for insurance purposes lack the necessary commonality that justifies group insurance. Randomly assembled groups do not exhibit a coherent structure or purpose, making it difficult for an insurance provider to assess the risk associated with the group. Similarly, groups organized purely for social interactions would not typically meet the criteria needed for group insurance since their formation isn't driven by a shared common purpose that aligns with the insurance provider's risk management strategies. Therefore, a group that rallies around a common cause or objective—unrelated to insurance—qualifies as eligible for group insurance coverage.