Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Group life insurance is generally issued to eligible employees without requiring a medical examination because:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Group life insurance relies on the group itself rather than individual medical exams to control risk. Because the coverage is issued on a group basis to broad classes of employees, the good risks and bad risks are pooled together, and the law of large numbers makes the group's mortality predictable. Eligibility requirements, such as being an actively-at-work, full-time employee, keep the group defined without the cost and delay of individual underwriting.
Why the other options are wrong
- B) Group insurers are not exempt from underwriting; the underwriting is simply performed on the group rather than on each individual.
- C) Medical questionnaires are not universally required; most employees receive coverage based on their eligibility class without any health questions.
- D) Employees who are not actively at work at the start of coverage are typically not eligible until they return to active work.
Memory hook
The group is the test, not the stethoscope. Big pool, predictable claims, no exam lines.