68. The employees of Ace Trucking Company must each pay a portion of the premium for their group insurance. This means they are members of a
Answer: B
Employees of Ace Trucking Company are members of a contributory group plan.
In a contributory group plan, employees share the cost of their insurance premiums, which aligns with the requirement that the employees of Ace Trucking Company must each pay a portion of the premium for their group insurance.
A) noncontributory group plan.
A noncontributory group plan would mean that the employer pays the entire premium and employees do not contribute financially. Since the question specifies that employees must pay a portion of the premium, this option is incorrect.
B) contributory group plan.
This option is correct because a contributory group plan requires employees to contribute to the insurance premiums. Since the employees of Ace Trucking Company are required to pay a portion, this directly indicates their membership in a contributory plan.
C) participating plan.
A participating plan typically refers to a situation where policyholders can share in the profits of the insurance company, often through dividends. The question does not mention profit sharing or dividends, making this option irrelevant to the context provided.
D) nonparticipating plan.
A nonparticipating plan does not allow policyholders to receive dividends or share in the profits of the insurance company. As with option C, this concept does not apply to the requirement for employees to pay premiums, thus making this option incorrect as well.
Conclusion
The correct answer is B, as it accurately describes a scenario where employees are required to contribute to their insurance premiums. All other options either misrepresent the contribution aspect or introduce unrelated concepts, confirming that B is the only valid choice in the context of the question.