Florida Life and Health Insurance License Practice Test

Which statement about noncontributory employee group life insurance is FALSE?

1. No medical exam is required

2. All eligible employees must be covered

3. A minimum number of employees is required to participate

4. Premiums are fully paid by the employer

The correct answer is: A minimum number of employees is required to participate

Noncontributory employee group life insurance means that the employer pays for the entire premium. This coverage is provided to all eligible employees without requiring them to contribute towards their own insurance. Therefore, both statement A and D are correct and not false. Statement B is also true as this type of insurance is typically offered to all eligible employees, not just a select few. Statement C, which suggests a minimum number of employees is required to participate, is incorrect as noncontributory life insurance does not have a minimum participation requirement. In fact, employers are required to offer this insurance to all eligible employees, regardless of the number.