Question 4004 of 287 · Texas Life, Accident and Health Agent Exam

In a noncontributory group life plan, the employer pays the entire premium, and

Exactly one answer is correct.

A75 percent of eligible employees must be enrolled
Beach employee must give evidence of insurability
C100 percent of eligible employees must be enrolled
Donly management employees may be covered

Show solution

Correct answer to question 4004

C: 100 percent of eligible employees must be enrolled

Explanation

Because the employer pays and nobody opts out, adverse selection is controlled by covering all eligible employees.