Which statement is true regarding participating in a group health insurance plan?

Prepare for the California PSI Site Life, Accident and Health Agent Exam with interactive flashcards and multiple choice questions. Enhance your understanding with comprehensive hints and explanations, and get ready for success!

The statement regarding a non-contributory group health plan is accurate because, in such a plan, the employer pays the entire premium, and therefore, it is required to cover all eligible members without any obligation on their part to contribute. This structure ensures that everyone who qualifies for coverage must be included in the plan, promoting greater risk pooling and stability for the insurance provider.

In contrast, other types of plans may have different participation requirements; for example, contributory plans involve contributions from employees, meaning not all eligible members may choose to enroll, allowing for more flexibility but also potentially leaving out some eligible individuals. Thus, while a non-contributory group health plan emphasizes universal coverage for eligible members, other plans have varying participation requirements and do not guarantee full coverage for all eligible members.

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