PSI Ohio Insurance Practice Exam 2026 – Complete Preparation Guide

The situation described refers to multiple small employers joining forces to access group insurance, which is known as a Multiple Employer Trust (MET). This arrangement allows small businesses that might not otherwise meet the minimum requirements for group insurance to pool their resources and share the risk associated with insuring their employees.

By forming a MET, these employers can negotiate better rates and benefit options due to the larger collective size, which enhances their bargaining power with insurance providers. This is particularly advantageous for small employers, as it reduces costs and increases the availability of suitable health and benefit plans for their employees.

Other terminologies mentioned, such as Cooperative Insurance or Employer Group Plan, do not specifically address the legal and structural framework that METs provide. METs are specifically designed to allow small employers, often in the same industry, to come together under one insurance contract, distinguishing them from other types of insurance arrangements.