What percentage of eligible persons must a policy cover in a noncontributory group?

In a noncontributory group insurance plan, the essential requirement is that the insurance policy must cover 100% of the eligible members of the group. This means that every individual who meets the eligibility criteria must be included in the policy without the need for them to contribute to the premium. Noncontributory plans typically have this stipulation to ensure that the entire group is protected, promoting maximum coverage and collective risk management.

This requirement is vital because it helps provide a safety net for all eligible individuals, ensuring that the risks associated with the group are fully addressed. A noncontributory arrangement simplifies the process, as there are no premium payments required from the participants, and it often results in higher participation rates, which is beneficial for both the insurer and the policyholders.