Group insurance is usually less expensive than individual insurance.Which of the following can be attributed as a reason?
A)With individual coverage, the insurer deals with one insured instead of many, streamlining marketing costs.
B)In group insurance, medical examinations are not needed because the employees are at least healthy enough to work.
C)In group insurance, the insurer has takes care of much of the administrative detail which reduces errors.
D)Commission scales on individual policies are lower than they are on group business.
E)In group insurance, the insurer has to collect premiums from every employee, making the process lengthy and complicated every time premiums have to be collected.

Question

Quizplus · Accepted Answer

Group insurance often does not require medical examinations for all members, as it is assumed that individuals are healthy enough to be working. This simplifies the underwriting process and reduces costs, making group insurance less expensive than individual insurance where each person is assessed individually.

Group Insurance Is Usually Less Expensive Than Individual Insurance