Which of the following statements about noncontributory group life insurance is FALSE?

In the context of noncontributory group life insurance, the statement that a minimum number of employees is required to participate is indeed false. Noncontributory group life insurance plans are characterized by the employer paying the entire premium for the coverage without requiring any contribution from the employees. Because the employer assumes all costs, they can provide coverage without necessitating participation from a minimum number of employees.

Generally, noncontributory policies automatically cover all eligible employees, and there is no stipulation that mandates a specific number of employees to partake in the insurance plan. This approach simplifies the enrollment process and ensures that all employees benefit from the insurance offered by their employer.

The other statements accurately reflect attributes of noncontributory group life insurance. All employees being automatically covered is a feature of noncontributory plans, and since the employer pays the full premium, there is no requirement for employee contributions. Therefore, it is clear that the assertion regarding a minimum number of employees is incorrect in the context of noncontributory insurance plans.