Page Five 



or all of any class or classes thereof (leterniined hy coiulitions 

 pertaining to the (Mniiloynient, foi- amounts of insurance 

 based upon some plan whicli will pr(M'lu(le individual selec- 

 tion, for the benefit of peisons other than the employer, 

 provided, however, that when the premium is to be paid by 

 the emplo^^er and employee jointly and the benefits of the 

 policy are offered to all eligible employees not less than 75% 

 of such emplo\'ees may be so insured." 



The advantages of group in urance are those of any co- 

 operative undertaking: increased benefits and reduced 

 individual obligations. Specifically, group insurance affords 

 lower rates than would be obtainable by persons insuring 

 independently; and the large profits accruing to insurance 

 companies from the group arrangement permit a wider 

 latitude in the privileges allowed. Although under the State 

 Law the satisfactory^ passing of medical examinations may 

 be required of participants in a group plan, the universal 

 custom of insurance companies is to w-aive the examinations 

 for this class of insurance. 



The method of computing the individual premium, under 

 the group arrangement, is simple. A standard table is used 

 to fix the provisional individual premium per $1,000 of 

 insurance, which depends, of course, on the individual's age. 

 (The premiums in the group insurance tables are much lower 

 than those in the tables used for independent insurance.) 

 These provisional indi\'idual premiums merely form the 

 basis for figuring the actual individual preyniums to be paid. 

 The total group premium per $1,000 is determined by adding 

 the provisional individual premiums. The actual individual 

 premium per SI, 000 is found by averaging. The amount of 

 insurance for each individual is then determined according to 

 salary, length of service, or both. (See Plans 1, 2 and 3, 



