Question 62

The minimum percent of eligible employees required to be covered is 100%.

In a scenario where group life insurance premiums are fully paid by the employer, it is mandated that 100% of eligible employees must be covered under the plan.

A) 25%

Option A is incorrect because a minimum coverage of only 25% does not satisfy the requirement for group life insurance when the employer pays the full premium. Such a low percentage would not ensure comprehensive coverage for all eligible employees.

B) 50%

Option B is also incorrect as it suggests that half of the eligible employees need to be covered. This does not comply with the stipulation that when premiums are paid entirely by the employer, complete coverage of all eligible employees is necessary.

C) 75%

Option C is incorrect since it indicates that 75% of eligible employees must be covered. However, the requirement is for full coverage, which means that 75% is insufficient and does not meet the standards set forth for employer-paid premiums.

D) 100%

Option D is correct because it aligns with the regulatory requirement that states when group life insurance premiums are entirely funded by the employer, all eligible employees must be covered, thereby ensuring full participation.

Conclusion

The correct answer is 100% coverage, as it is a regulatory requirement for group life insurance when premiums are paid by the employer. All other options fall short of this requirement, illustrating that partial coverage is not acceptable in this context. This ensures that all eligible employees benefit from the insurance plan provided by the employer.