Mass Marketing of Insurance to Groups and Associations

Summary

This practice note addresses the mass marketing of insurance products as distinguished from the sale of individual insurance policies to persons or groups. Individual sales involve selling single insurance contracts to individuals, or, depending upon the kind of insurance or the policy form, to families or businesses. Mass marketing involves selling either individual policies, group insurance resulting in the issuance of certificates of coverage to multiple individuals or entities, or memberships in insurance programs to groups, associations, businesses, or to a broader group through the mail. This practice note will explore the definitions that are used in the industry and their implications. Various other considerations will also be discussed, including regulatory and licensing issues that can arise in mass marketing.