How many members are required to establish a group long-term care policy?

The correct answer indicates that a minimum of 100 members is required to establish a group long-term care policy. This requirement is important because group long-term care insurance provides coverage to a defined group of individuals, often associated by employer or other organizational ties.

Having a minimum membership requirement helps ensure that the risk pool is large enough to spread out the potential costs associated with long-term care claims. A larger group can stabilize premiums and provide a more sustainable insurance product. This measure also aligns with underwriting principles that recognize the need for adequate participation to maintain a healthy risk pool and effective administration of the policy.

In contrast to other options, smaller group sizes may not provide sufficient diversity in risk, potentially leading to higher costs and less stability for policyholders. Thus, the 100-member benchmark reflects an industry standard that balances accessibility with the economic feasibility of providing long-term care insurance coverage.