Question

32 shirley is a new employee at a company that offers a group insurance plan with optional additional coverage. shirley will be enrolled in the plan upon completing probation, and she is planning to obtain additional coverage. shirley wants to know the premium amount she will be required to pay for the base and the optional coverage. which of the following statements accurately describes shirleys premium payments under the group plan?
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a. shirley will have to pay 100% of the premiums for both the base coverage and the additional coverage
b. shirley will have to pay 50% of the premiums for the base coverage and 100% for the additional coverage.
c. shirley will have to pay 30% of the premiums for the base coverage and 50% for the additional coverage.
d. shirley will have to pay 100% of the premiums for the base coverage and 50% for the additional coverage.
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Explanation:

In group insurance plans, typically, employees often pay a portion of the base coverage (like 50% or 30%) and 100% for optional/additional coverage since the additional is optional and the employee bears the full cost of that extra coverage. Option a says 100% for both, which is unlikely as base is usually shared. Option b: 50% base and 100% additional – this is common (company pays 50%, employee 50% for base; employee pays 100% for optional). Option c: 30% base and 50% additional – optional is usually 100% employee - paid. Option d: 100% base and 50% additional – base is typically shared, not 100% employee - paid. So option b is correct.

Answer:

b. Shirley will have to pay 50% of the premiums for the base coverage and 100% for the additional coverage.