How many employees must be covered under a non-contributory group life insurance plan offered by an employer?

A non-contributory group life insurance plan is one where the employer funds the entire cost of the premiums, and employees are automatically covered without needing to contribute. For a plan to be considered non-contributory, it typically requires that all eligible employees be included to ensure that coverage is maximized and to avoid adverse selection, where only those expecting to need the insurance enroll.

This inclusive approach helps stabilize the insurance pool, as having all employees enrolled balances the risk among healthy and less healthy individuals. Therefore, the requirement for 100% of eligible employees to be covered under a non-contributory plan is what makes this choice correct.

In contrast, other answer choices suggest varying levels of participation, which do not align with the fundamental principle of a non-contributory plan requiring universal coverage for eligible employees.