Which of the following statements is true about underwriting in group life insurance plans?

In group life insurance, underwriting typically applies to all members of the group as a whole rather than assessing individuals separately. This process analyzes the risk associated with the group collectively, allowing insurers to evaluate the overall risk based on the demographics and health profiles of the group members. This approach facilitates simpler enrollment and often results in more favorable terms for participants compared to individual life insurance policies.

This characteristic of group underwriting distinguishes it from individual life insurance, where each individual's health and circumstances would be assessed. In many group plans, enrollment is automatic for eligible members, and many basic coverage amounts can be offered without individual underwriting requirements, given that the group meets certain criteria, such as a minimum number of participants. Thus, applying underwriting to all members instead of assessing them individually is key to the functioning of group life insurance plans.