Which of the following are characteristics of group policies?

Group policies are designed to provide insurance coverage to a collective group of people, often through an employer or an organization. One primary characteristic of group policies is their ability to reduce costs compared to individual policies. This cost reduction is achieved through several factors, including the pooling of risk among a larger group, which minimizes the overall risk for the insurer and subsequently lowers premium costs for all participants.

Another characteristic is the reduction in adverse selection. Adverse selection occurs when individuals who are more likely to require coverage (those with higher health risks) are more likely to purchase insurance, leading to increased costs for insurers. In group plans, this risk is spread across a larger population, including both low-risk and high-risk individuals, reducing the impact of adverse selection.

Additionally, group policies often come with fixed benefits, meaning that the benefits provided (such as a set amount of life insurance coverage) do not fluctuate based on individual health assessments or other factors. This standardization of benefits simplifies administration and helps in setting premiums.

The other options present characteristics that do not align with the fundamental nature of group insurance policies. Fixed costs and flexible benefits or increased costs and variable benefits do not typically describe group insurance because one of its main advantages is cost-effectiveness. Additionally, individualized costs and