Who is eligible for insurance under a group policy provided to a labor union?

Study for the Maryland Laws and Rules Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct choice indicates that every member of the labor union is eligible for insurance under a group policy. This is in line with the principles governing group insurance policies, which are designed to provide coverage to large groups of individuals associated with a common interest, such as membership in a union.

Group insurance plans aim to extend benefits broadly to all members, as these policies benefit from economies of scale. This means that the risks are spread out across a larger pool of individuals, generally leading to lower premiums and more comprehensive coverage options available to everyone. As such, all members, not just a select few, have the opportunity to receive the insurance benefits.

The other options suggest limitations that are generally not consistent with the principles of group insurance policies. Limiting coverage to only union leaders, only full-time members, or only active members would undermine the purpose of providing accessible benefits to the entire membership base of the union. Therefore, it is reasonable and common practice for every union member to be included under such a policy, reflecting the collective nature of union membership and support.

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