hi
i want to know, How can a labor union provide group insurance?
Total Comments: 6
Posted: Tue Aug 31, 2010 11:49 pm Post Subject:
A labor union may provide group benefits to its members since the members are considered a "natural group" -- one formed for any purpose other than obtaining insurance.
The labor union would seek the services of a licensed agent, or a third party administrator to obtain the coverage it desired for the members.
The policy could be paid for entirely by the union, the employer (if all members work for one employer), or the union members. Or by any combination of the three.
Posted: Mon Sep 13, 2010 10:51 am Post Subject:
But does the group insurance by labor union would mean lower premiums and rates.As it is with credit unions in universities?
Posted: Mon Sep 13, 2010 02:07 pm Post Subject:
But does the group insurance by labor union would mean lower premiums and rates.As it is with credit unions in universities?
Credit unions do not provide group life insurance for their members in the same manner that a trade union would. And in America, no university provides group life insurance to its students.
Rates for group insurance, whether life or health, depend on a number of variables. Chief among them are average age of the group, gender distribution, and general risk (hazardous employment, past history of claims). In general, and all things being equal, the larger the group, the lower the premium, since the risk is being spread among a larger pool of insureds.
Posted: Tue Sep 14, 2010 09:05 am Post Subject:
Actually i did not mean that credit unions provide insurance. I was comparing the two scenarios, as credit unions provide credit cards at lower rates so i wanted to know similarly labor unions offer insurance at lower rates.
As usual you replied effectively.
Posted: Tue Sep 14, 2010 01:33 pm Post Subject:
Your comparing two things that have nothing to do with one another with regards to why they might be offered differently (at different rates).
Insurance offered through a labor union is a group policy with no individual underwriting, but instead determins price be use of a census (group profile), which takes age and gender mostly into consideration. The older the average age of the group, the higher the premiums will tend to be.
The offering of group insurance from a labor union is not synonomous to a credit union offering a credit card with competitive interest rates to say a bank.
Posted: Thu Oct 28, 2010 02:25 pm Post Subject:
A labor union can provide group insurance for its members under a policy issued to the union. The union is the policyholder, just as the trust is the policyholder under a MET. A union may purchase a group policy for a large number of members who are employed by the same company, or for union members working for different companies. Group insurance purchased through a union is particularly advantageous in industries such as construction, where union members may work for many employers during a year. As a result, union members are usually covered under group insurance plans sponsored by one or more employers.
Posted: Tue Aug 31, 2010 11:49 pm Post Subject:
A labor union may provide group benefits to its members since the members are considered a "natural group" -- one formed for any purpose other than obtaining insurance.
The labor union would seek the services of a licensed agent, or a third party administrator to obtain the coverage it desired for the members.
The policy could be paid for entirely by the union, the employer (if all members work for one employer), or the union members. Or by any combination of the three.
Posted: Mon Sep 13, 2010 10:51 am Post Subject:
But does the group insurance by labor union would mean lower premiums and rates.As it is with credit unions in universities?
Posted: Mon Sep 13, 2010 02:07 pm Post Subject:
But does the group insurance by labor union would mean lower premiums and rates.As it is with credit unions in universities?
Credit unions do not provide group life insurance for their members in the same manner that a trade union would. And in America, no university provides group life insurance to its students.
Rates for group insurance, whether life or health, depend on a number of variables. Chief among them are average age of the group, gender distribution, and general risk (hazardous employment, past history of claims). In general, and all things being equal, the larger the group, the lower the premium, since the risk is being spread among a larger pool of insureds.
Posted: Tue Sep 14, 2010 09:05 am Post Subject:
Actually i did not mean that credit unions provide insurance. I was comparing the two scenarios, as credit unions provide credit cards at lower rates so i wanted to know similarly labor unions offer insurance at lower rates.
As usual you replied effectively.
Posted: Tue Sep 14, 2010 01:33 pm Post Subject:
Your comparing two things that have nothing to do with one another with regards to why they might be offered differently (at different rates).
Insurance offered through a labor union is a group policy with no individual underwriting, but instead determins price be use of a census (group profile), which takes age and gender mostly into consideration. The older the average age of the group, the higher the premiums will tend to be.
The offering of group insurance from a labor union is not synonomous to a credit union offering a credit card with competitive interest rates to say a bank.
Posted: Thu Oct 28, 2010 02:25 pm Post Subject:
A labor union can provide group insurance for its members under a policy issued to the union. The union is the policyholder, just as the trust is the policyholder under a MET. A union may purchase a group policy for a large number of members who are employed by the same company, or for union members working for different companies. Group insurance purchased through a union is particularly advantageous in industries such as construction, where union members may work for many employers during a year. As a result, union members are usually covered under group insurance plans sponsored by one or more employers.
Insurance in the USA -- www.insuus.com
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