Which of the following statements about group insurance underwriting principles is true?

Question

Quizplus · Accepted Answer

A flow of people through the group is desirable because it helps balance the risk pool and prevent adverse selection, where only high-risk individuals remain in the group. It is not necessary for employees to remit premiums directly to the insurance company, as premiums can be deducted from their paychecks. The average age of the group should ideally remain stable or decrease over time, as a younger group generally has lower healthcare costs. The formation of a group specifically for the purpose of obtaining insurance is not a necessary underwriting principle.

Which of the Following Statements About Group Insurance Underwriting Principles