Massachusetts State Life Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Massachusetts State Life Insurance Exam. Use our flashcards and multiple choice questions, each with hints and explanations. Prepare confidently for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


What is required for an employee contributory group insurance plan?

  1. 100% participation of employees

  2. 75% participation of employees

  3. 50% participation of employees

  4. Participation based solely on seniority

The correct answer is: 75% participation of employees

The requirement for an employee contributory group insurance plan is that typically, at least 75% participation of eligible employees is needed. This standard ensures that the risk is spread evenly across a larger group, making the premiums more affordable and the group insurance more viable. A higher level of participation indicates that the insurance plan is appealing and necessary for the employees, confirming its purpose as a benefit that meets the needs of a significant portion of the workforce. The other options suggest different participation requirements or criteria, such as 100% or lower percentages, which would not align with common regulatory and market practices for contributory plans. Additionally, reliance on seniority alone for participation does not meet the criteria for group coverage, as contributory plans are designed to provide coverage based on employee choice and participation level.