Administrative Policy
24 July 2015 Folio S2-F1-C1
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.
25 November 1992 T.I. 922245 (September 1993 Access Letter, p. 404, ¶C5-211)
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.