PSI Ohio Insurance Practice Exam

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Study for the Ohio Insurance Test. Prepare with flashcards and multiple choice questions, each question accompanied by hints and explanations. Excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In noncontributory plans, what is the required percentage of eligible members that must participate?

50%
70%
100%
1%

The correct answer is: 1%

In noncontributory plans, the requirement is that 100% of eligible members must participate for the plan to be fully effective. This type of plan is one in which the employer pays the entire premium and provides coverage without requiring employees to contribute financially. Since employees are not contributing, it is essential that all eligible members participate to ensure the plan provides adequate risk pooling and fulfills its purpose. Choosing 1% does not reflect the correct understanding of noncontributory plans, as participation rates below 100% in such plans can undermine the financial structure and risks covered by the insurance. By requiring full participation, noncontributory plans ensure that the risk is spread across the entire group, maintaining the integrity and sustainability of the insurance coverage.