Which of the following best describes the basic principle of group insurance?

The basic principle of group insurance revolves around the idea of providing coverage for multiple individuals under a single insurance contract. This approach allows insurers to offer benefits to a group, such as employees of a company, without the need for each member to have an individual policy. The risk is pooled across all members of the group, which can often result in lower premiums and more comprehensive coverage compared to individual policies.

Under this model, underwriting processes typically assess the group as a whole rather than focusing on individual health assessments. This allows for the inclusion of members who may have health issues that would otherwise make obtaining individual insurance more difficult or expensive. Consequently, group insurance is especially beneficial in promoting access to coverage for a larger population.

This concept differs from the other options, which each miss key aspects of how group insurance operates. For example, discussing individual policies contradicts the fundamental principle of pooling risk. Additionally, while group insurance is commonly available with larger employers, it is not exclusively restricted to them; smaller groups can also qualify depending on the insurer's guidelines. Lastly, while individual health assessments may be part of the process in group settings, the main focus is on the collective risk of the group rather than on assessments of each member.