Question 4003 of 287 · Texas Life, Accident and Health Agent Exam
In a contributory group life plan,
Exactly one answer is correct.
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Correct answer to question 4003
- B: the employees pay part of the premium, so at least 75 percent of eligible employees typically must participate
Explanation
When employees contribute, a minimum participation percentage is required to limit adverse selection. In a noncontributory plan the employer pays everything and 100 percent of eligible employees must be covered.
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