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If an employee in poor health is part of a large group that is acceptable for group life insurance, that employee is

Rationale

That employee is eligible for the same type of coverage as other employees.

In group life insurance plans, all members of the group typically receive the same coverage regardless of individual health status. This means that even an employee in poor health is entitled to the same benefits as their healthier colleagues, as the risk is pooled across the entire group.

A (ineligible for coverage under the plan) YOUR ANSWER

Group life insurance is designed to provide coverage to all members of the group, making it unlikely for an employee to be entirely ineligible due to health issues. While individual underwriters might assess risk, group plans generally do not exclude members based solely on health conditions.

B (eligible for coverage, but on a rated basis) YOUR ANSWER

Rated basis refers to increased premiums due to higher risk, which typically applies to individual insurance policies rather than group plans. In a group insurance setting, all members, including those in poor health, are usually covered under the same terms without additional ratings.

D (eligible for coverage more limited than that of other employees) YOUR ANSWER

Group life insurance does not impose limitations on coverage based on individual health status. All employees are generally provided with the same level of benefits, ensuring that no one is disadvantaged due to personal health conditions.

Conclusion

In group life insurance, all employees, regardless of their health status, are eligible for the same level of coverage. This approach fosters inclusivity and ensures that even those in poor health receive equal benefits, distinguishing group plans from individual policies, which may involve more stringent health assessments.

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