Which of the following statements is true regarding the formation of a group for insurance purposes?

A group for insurance purposes is defined by its members having a common interest or connection that justifies their inclusion in the insurance policy. This commonality ensures that the group is more than just a collection of individuals; it's organized around shared objectives, such as employees within a company, members of a trade association, or individuals in a club. This connection helps insurance companies assess risk more effectively and helps in managing claims.

For insurance underwriting and to maintain the integrity of group policies, the existence of a common interest is essential. It provides the basis for the group's eligibility for coverage and supports the rationale behind group insurance programs, which often allow for lower premiums and broader coverage options compared to individual policies. The other options, which suggest that a group can be arbitrarily formed or that it must have a specific minimum number of members, do not reflect the fundamental requirement necessary for group insurance formation.