Ace California Life & Health Insurance Exam 2025 – Burst Into Your Bright Insurance Future!

Question: 1 / 400

In a noncontributory group life insurance plan, what percentage of employee participation is required?

50%

75%

100%

In a noncontributory group life insurance plan, the requirement is for 100% employee participation. This means that all eligible employees must be enrolled in the insurance plan for it to be effective. Noncontributory plans are often offered by employers as a benefit without requiring employees to contribute to the premium costs. Since the insurance is provided solely by the employer, ensuring full participation is crucial to spread the risk evenly among all members of the group, which is essential for the underwriting process and the overall stability of the insurance coverage. Full participation also reinforces the collective nature of group insurance, which allows for potentially lower rates based on the group's overall risk profile.

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