PSI Ohio Insurance Practice Exam 2026 – Complete Preparation Guide

In noncontributory plans, the requirement is that 100% of eligible members must participate. This means that the employer covers the entire cost of the insurance premium without requiring any contribution from employees.

The rationale behind this requirement stems from the nature of noncontributory plans, which aim to provide universal coverage for all eligible employees. By mandating that every eligible participant enrolls, the plan ensures a larger risk pool, which can help stabilize premiums and improve the overall effectiveness of the benefits provided.

This structure also promotes inclusiveness, as it guarantees that all employees receive the same level of coverage without any financial barriers, encouraging participation and ensuring that everyone is protected under the plan. In contrast, other options would either indicate a lower involvement which is not characteristic of a noncontributory plan, or suggest that some members could opt-out completely, which contradicts the essence of such plans.