Which of the following is an important underwriting principle of group life insurance?

An important underwriting principle of group life insurance is that everyone must be covered in the group. This principle ensures that the risk is spread across a larger pool of individuals, which helps lower the overall cost of coverage for each member. By including all eligible members of a group, insurers can more accurately assess risk and maintain a balanced risk pool.

In contrast to individual life insurance, where underwriting focuses on the health and risk profiles of individual applicants, group life insurance emphasizes collective underwriting. This is beneficial because it allows people who might have difficulty obtaining individual coverage due to health concerns to still be included in the group plan.

When all members of a group are covered, the policy typically becomes more affordable, and those who might otherwise be seen as higher risks can still receive coverage, contributing to the collective risk-sharing aspect that is a hallmark of group insurance arrangements.