What is the minimum number of employer groups that must be covered at the date of issue?

The minimum number of employer groups that must be covered at the date of issue is set at two. This requirement ensures that there is a sufficient level of risk diversification in the insurance coverage. By requiring at least two employer groups, the insurance product can better manage the risk associated with any single group. This also promotes a healthier insurance pool, which helps in maintaining financial stability and actuarial soundness.

In many jurisdictions, including Georgia, insurance regulations are designed to protect both the insurer and the insured. Covering multiple employer groups minimizes the impact of adverse selections or unanticipated claims from one specific group. It allows for a broader assessment of risk, ensuring that the insurance entity is adequately positioned to cover claims as they arise. Therefore, having at least two groups is crucial for regulatory compliance and maintaining a balanced risk portfolio.