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Association Group

Definition of "Association group"

Daniel Damesek
  Coldwell Banker Residential Brokerage - Westfield West

Bona fide organization that purchases insurance on a group basis on behalf of members. However, a group cannot be formed for the purpose of purchasing insurance since adverse selection would take place. Group selling permits economies of scale to operate, so that the cost of insurance to a member is appreciably less than an individual policy. The insurance company/agent is able to benefit through individual sales to the group's members.

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