If a labor union sponsors a group life insurance plan for its members, which statement is correct?

The correct statement in this scenario is that premiums must be paid either entirely from union funds or a combination of union funds and member funds. This reflects the financial structure often seen in group insurance plans. In such arrangements, it's common for the sponsoring organization, in this case, the labor union, to share the cost of premiums with its members. The flexibility in funding allows unions to offer benefits while also taking into account the financial participation of the members, making it more accessible.

The policy does not require that the union members act as policyowners. Typically, the union itself is the policyowner of the group insurance plan, allowing them to manage the coverage on behalf of the members. Additionally, while unions may cover the entire premium, they are not mandated to do so; hence it is not accurate to say that the union must pay all premiums. Lastly, it is not necessary for all union members to enroll. While participation is often encouraged to make the group plan viable, not all members may choose to take part, and enrollment may be subject to certain conditions rather than a strict requirement.