Group Term Life Insurance Policy

Administrative Policy

S2-F1-C1 - Health and Welfare Trusts

no self-funded plans/min. of 2 emp/ees

1.7 The term insurer is defined in subsection 248(1) to mean an insurance corporation (that is, a corporation that carries on an insurance business). Therefore, a group term life insurance policy cannot be self-funded . A group term life insurance policy must also include and provide coverage to two or more employees.

20 December 1999 External T.I. 9922245 - SHARE OF C/S OF A FAMILY FARM CORP.

Re arrangement where the employer includes coverage for dependents of the employee but documentation provided to the employee states that such additional coverage is optional.