In Contributory Plans, Where Employees Pay All or Part of the Premium

question 57

Multiple Choice

In contributory plans, where employees pay all or part of the premium amount, 75 percent of employees must participate.Identify the rationale for this rule.

• A)It helps reduce the premiums for group insurance contracts.
• B)It helps in gaining accurate information about insureds participating in the contract.
• C)It helps protect the plan from adverse selection.
• D)It helps the underwriter to acknowledge attribution error.
• E)It helps the employer to take stop loss insurance and reinsurance contracts to limit losses.

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Definitions:

Natural Killer

A type of lymphocyte (white blood cell) part of the innate immune system, responsible for the destruction of infected and cancerous cells.

Monoclonal Antibodies

Laboratory-produced molecules engineered to serve as substitute antibodies that can restore, enhance, or mimic the immune system's attack on cells, including cancer cells.

B Cells

A type of white blood cell that plays a vital role in the immune system, particularly in the production of antibodies to neutralize pathogens.

Antigens

Substances that provoke an immune response when detected by the body, typically proteins or polysaccharides found on the surface of pathogens.