What is required for participation in a noncontributory group life plan?

In a noncontributory group life insurance plan, participation requires that all eligible employees be enrolled in the plan, which is why 100% of eligible employees is the correct answer. This type of plan does not require employees to contribute any premium towards their coverage; instead, the employer pays the entire cost of the insurance.

The reasoning behind the requirement for total participation is to minimize adverse selection. If only some employees are allowed to opt-in, it could lead to a situation where those at higher risk are more likely to enroll, thus increasing costs for the insurer. By mandating that all eligible employees participate, the risk is spread more uniformly across a larger group, allowing for more stable premium rates and ensuring that the plan is effective for all covered individuals.