Which statement about Multiple Employer Trusts (METs) is incorrect?

The statement indicating that each individual employer is issued a separate policy is incorrect because, in the context of Multiple Employer Trusts (METs), employers pool their resources together under a single master policy. This structure allows the members of the trust—typically various employers—to provide employee benefits, such as health insurance, under a collective agreement, rather than requiring separate policies for each employer.

Pooling resources through a single policy not only simplifies administration but can also reduce costs due to economies of scale. The individual employers do not receive separate policies; instead, they share the benefits of a single plan, which can lead to more favorable terms and conditions.

In contrast, the other statements accurately reflect relevant aspects of METs. For instance, the requirement for a MET to consist of at least two employers and a minimum of 100 employees ensures that there is enough participation to justify the collective risk. Additionally, the enrollment requirements for contributory and noncontributory plans align with standard practices in the insurance industry, where participation rates impact the sustainability and pricing of the plans offered.