Question

Bentley owns a manufacturing unit and his insurance agent recommends a group plan for his employees. Bentley enquires the agent about the processes involved in setting the premiums for the plan. Which of the following responses given by the agent is true?

a) The premiums charged for group benefits are not guaranteed.
b) The employees pay their premiums directly to the insurer.
c) The employee is responsible for paying 100% of the premiums.
d) The premiums of a group plan cannot be changed by the insurer.

Answer 1

The premiums charged for group benefits are not guaranteed and can change over time based on factors such as the number of employees, their ages, and the overall health of the group.

Step-by-step explanation:

The correct response given by the insurance agent is a) The premiums charged for group benefits are not guaranteed.

Insurance premiums for group plans are not fixed and can change over time. Factors such as the number of employees, their ages, and the overall health of the group can affect the premiums charged. It is important for Bentley to understand that the premiums he pays for the group plan may change in the future.