What is the main characteristic of a group insurance plan?

A group insurance plan is primarily characterized by its provision of coverage to members of a specific group under a single premium. This structure enables the plan to offer lower premiums and more straightforward administration since it covers an entire group rather than individual members separately. The collective risk is shared across all members of the group, which helps in keeping costs more manageable.

In contrast, options that suggest individual applications or higher costs do not align with the essence of group insurance, which is designed to simplify access to coverage and reduce costs through shared benefits. Additionally, limiting coverage to only family members of an employee does not encapsulate the broader scope of group insurance, which can include various group members, such as employees of a company or members of an association. Thus, the defining aspect of group insurance plans is their ability to provide coverage under one unified premium for all eligible individuals within the specified group.