Which of the Following Statements About Group Insurance Underwriting Principles

question 1

Multiple Choice

Which of the following statements about group insurance underwriting principles is (are) true?
I.If a plan is contributory, 100 percent of the eligible employees must be covered.
II.Ideally, there should be a flow of older people into the group and younger people out of the group.

• A) I only
• B) II only
• C) both I and II
• D) neither I nor II

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Definitions:

Common Stock

Shares issued by a corporation representing partial ownership in the company, entitling holders to vote on corporate matters.

Short-Term Investments

Assets of a financial nature forecasted to be liquidated or exchanged for cash within a twelve-month period.

Investing Activities

Investing activities include transactions and events related to the acquisition and disposal of long-term assets and investments not related to the entity's primary business operations.

Noncash Investing

Investment activities that involve transactions not involving physical cash, such as acquiring assets through exchange or issuing stock for an asset.