What is the minimum group income for five years?

What is the minimum group income for five years?

• A. $500,000
• B. $1,000,000
• C. $2,000,000
• D. $750,000

Answer: (A)

In group self-insurance plans, regulators look for a track record of sufficient business activity to show the group can support future claim payments. The five-year income threshold is set to ensure there’s a stable, ongoing level of activity. The minimum aggregate income over five years is $500,000, which translates to about $100,000 per year on average. This level indicates a viable volume of work to sustain the risk pool and related costs. Higher totals would also meet the requirement, but they aren’t the minimum.

In group self-insurance plans, regulators look for a track record of sufficient business activity to show the group can support future claim payments. The five-year income threshold is set to ensure there’s a stable, ongoing level of activity. The minimum aggregate income over five years is $500,000, which translates to about $100,000 per year on average. This level indicates a viable volume of work to sustain the risk pool and related costs. Higher totals would also meet the requirement, but they aren’t the minimum.