Which of the following statements about group insurance underwriting principles is (are)true?
I.If a plan is contributory,100 percent of the eligible employees must be covered.
II.Ideally,there should be a flow of younger people into the group and older people out of the group.

Question

Quizplus · Accepted Answer

Statement II is true. It is ideal for there to be a flow of younger people into the group and older people out of the group to maintain a balance of risk and cost. Statement I is false. In a contributory plan, only a certain percentage of eligible employees are required to participate, usually 75%.

Which of the Following Statements About Group Insurance Underwriting Principles