Montana State Life Insurance Practice Exam

What is the minimum number of participants required in a group policy issued to a labor union in Montana?

1. 10 union members

2. 15 union members

3. 20 union members

4. 25 union members

The correct answer is: 25 union members

In Montana, a group policy issued to a labor union requires a minimum of 25 participants. This regulation ensures that there is a sufficient number of members participating in the group insurance plan, which helps to spread risk among a larger pool of individuals. By having at least 25 members, the insurer can maintain financial stability and manage the risk associated with providing coverage to the group. This requirement is designed to promote the viability of group insurance arrangements and ensure that the coverage can operate efficiently and effectively. Other numbers of participants, such as 10, 15, or 20, do not meet the regulatory threshold necessary for issuing group policies to labor unions in Montana, which underscores the importance of adhering to this specific minimum to qualify for group coverage.