South Carolina Life and Health Practice Exam

Which of the following is typically NOT eligible for coverage in a group health policy?

1. Temporary employee

2. Full-time employee

3. Part-time employee

4. Permanent employee

The correct answer is: Temporary employee

In a group health policy, coverage is generally extended to a specific category of employees, and temporary employees are typically not included. This is because group health insurance is often designed to provide benefits to a stable workforce and those who are in continuous employment. Temporary employees usually do not meet the criteria for eligibility, as their employment may be short-term and does not provide the insurance company with a sustainable risk pool. Full-time, part-time, and permanent employees usually qualify for group health insurance as they represent a more stable workforce. Insurers typically prefer to offer coverage to those who have ongoing employment relationships, as these employees are more likely to remain with the company long enough for the insurance company to manage risk effectively. Temporary employees, on the other hand, may not have a consistent enough presence in the workplace to justify insurance coverage under a group policy.