Question 62

The minimum percent of eligible employees required to be covered is 100% when group life insurance premiums are paid totally by the employer.

When an employer pays the full premiums for group life insurance, it is mandated that 100% of eligible employees must be covered under the policy. This ensures comprehensive coverage and participation across the workforce.

A) 25%

This option is incorrect because requiring only 25% of eligible employees to be covered does not meet the legal standards for fully employer-paid group life insurance. Such a low threshold would not fulfill the requirement for comprehensive coverage.

B) 50%

Choosing 50% as the minimum coverage is also incorrect. Similar to the 25% option, it does not satisfy the requirement for complete employee participation in a fully employer-funded group life insurance plan.

C) 75%

Option C is incorrect as well, as 75% does not align with the legal requirement that mandates complete coverage of eligible employees when the employer pays the premiums in full. This option still allows for a significant number of employees to be uninsured.

D) 100%

This option is correct because when an employer pays for group life insurance, it is required that all eligible employees must be covered. This ensures that the benefits of the insurance reach every eligible individual without exception.

Conclusion

The requirement for 100% coverage when the employer fully pays premiums is in place to ensure that all eligible employees benefit from the insurance, thus promoting equity and comprehensive protection. The other options fail to meet the necessary standards for group life insurance coverage, making them invalid choices.