Which criterion must an association meet to be eligible for a group life plan?

To be eligible for a group life insurance plan, the group must be formed for a purpose other than acquiring insurance. This criterion ensures that the primary intent of the group is not solely to obtain insurance benefits but rather to serve a legitimate common interest, such as a professional organization, trade association, or other collective endeavors. This requirement helps maintain the integrity of group insurance arrangements, as it fosters genuine connections among members beyond just the insurance aspect.

When groups are established with a broader purpose, it often leads to more robust participation and cohesion among members. This is essential for the risk pooling aspect of group insurance, which relies on a stable and engaged membership base. It also distinguishes legitimate groups from those that could be viewed as mere vehicles for accessing insurance products without any real association among members.