Ace California Life & Health Insurance Exam 2026 – Burst Into Your Bright Insurance Future!

A non-contributory group health insurance plan is characterized by the requirement that all eligible members are covered without needing to contribute any premium towards the cost of the insurance. This means that the employer or the plan sponsor pays the full premium, which ensures that coverage is provided to everyone who qualifies under the group without financial burden on the members. This approach often leads to higher enrollment since everyone gains access to the benefits without direct costs to them.

The other statements do not accurately reflect the principles of a non-contributory plan. Such plans are designed to include all eligible members, which contrasts with the first option that suggests member contributions are necessary. Additionally, the claim that it covers only a portion of eligible members undermines the foundational idea of non-contributory plans, which seek to ensure widespread coverage. While offering a non-contributory health plan is typically an option for employers, the statement regarding universal coverage defines its essence more specifically and correctly.