Group Certificate
What Does Group Certificate Mean?
A group certificate is a document issued by an insurance company to all members of a group plan. It outlines the benefits provided under the insurance contract and certifies that the policy has been purchased for a specified group of people. This document typically includes the names of the insured members, the type of policy, and the limits of coverage. It also highlights any exclusions, but it does not include all the detailed terms and conditions of the full insurance contract. The group certificate serves as a summary for members rather than a comprehensive policy document.
Insuranceopedia Explains Group Certificate
A group certificate is issued solely for informational purposes and does not alter or amend the coverage of the group insurance policy. To receive a group certificate, it is essential to be a member of the group insurance plan. The certificate typically includes details such as the group policy number, the name of the policyholder, the type of coverage, and the effective date of the group policy.
This document is important because it serves as proof that the insured is part of the group insurance policy. Instead of carrying the full policy, the group certificate is more practical and efficient. It verifies that there is an active group insurance policy held by the insurer that covers the losses of the members.
