What is the minimum number of employees required for a public employee group to be eligible for group life insurance?

The minimum number of employees required for a public employee group to be eligible for group life insurance is five. This threshold is established to ensure that the group is sufficiently large for the insurance company to manage risk effectively. A larger group typically allows for better risk pooling, which is essential in calculating premiums and providing coverage.

Having at least five employees allows the insurer to spread the risk among more individuals, which can lead to more favorable terms for the insured group. It also helps in ensuring that the group remains stable and that there are enough participants to justify the administrative and underwriting costs associated with the policy.

In many jurisdictions, including Idaho, insurance regulations often specify these minimum group sizes to encourage the formation of viable insurance pools that are economically sustainable and beneficial for both the insurer and the insured.