What limitation exists for shareholders in a Single Employer Group plan?

In a Single Employer Group plan, the primary limitation concerning shareholders is that they generally cannot be included in the insurance plan as employees. This means that shareholders who do not perform services for the company as employees are often excluded from eligibility for health insurance benefits provided under the employer's group plan.

This restriction is rooted in the design of group health insurance plans, which are typically intended to provide coverage primarily to employees rather than individuals holding ownership stakes in the company. By excluding shareholders not engaged in employee activities, the plan aims to maintain compliance with the regulations governing group insurance and ensure that benefits are directed towards those who actively contribute to the workforce.

The other options reflect different aspects of health insurance policies but do not accurately describe limitations specific to shareholders in a Single Employer Group plan. Therefore, the focus on the eligibility criteria for group plans highlights why this answer is the most appropriate in this context.