Which of the following best describes a Noncontributory Group insurance plan?

A Noncontributory Group insurance plan is characterized by the employer covering the entire cost of the premiums for the insurance. This means that all eligible employees must participate in the plan, as there are no employee contributions required. The arrangement ensures broader participation and helps to provide a safety net for all employees, enhancing group solidarity and making administration easier for the employer.

In such plans, since the employer fully funds the premium, all eligible employees are automatically enrolled, promoting higher enrollment rates and ensuring that the cost of coverage is spread across the pool of insured individuals. This contrasts with contributory plans, where both the employer and employees share the premium costs.

The option stating that employees have the option to opt out does not apply to noncontributory plans since participation is mandatory for all eligible employees. Additionally, variations in coverage based on employee choices and sharing premium costs are features of different types of group plans rather than defining aspects of a noncontributory plan.