Which of the following describes group underwriting?

Group underwriting is characterized by the principle of covering all eligible members of a group, regardless of their individual health conditions. This approach is fundamentally different from individual underwriting, where each person's health status and risk factors are assessed to determine their insurability.

In group underwriting, insurers evaluate the overall risk of the entire group rather than focusing on individual health assessments. This typically leads to simplified and broader coverage options, as the risk is spread over a larger pool of individuals. This arrangement is beneficial because it allows individuals within the group who may have pre-existing conditions or higher risks to obtain insurance that they might otherwise be denied if underwriting were done on an individual basis.

The other options suggest various limitations or conditions that are not characteristic of group underwriting practices. For example, covering only selected individuals based on health status or requiring individual health assessments would introduce complexities typical of individual underwriting, which is not how group insurance operates. Thus, the correct answer reflects the inclusive nature of group underwriting, where coverage is extended to all eligible members without individual health scrutiny.