If a group is considering applying for a group life policy, it MUST?

In order for a group to qualify for a group life insurance policy, it must have a minimum number of eligible persons. This requirement is in place to ensure that the insurance pool is large enough to spread risk and enable the insurer to manage claims effectively. The minimum number of eligible members is typically set by insurance regulations or the insurer's guidelines.

The rationale behind this requirement is that a larger group helps to stabilize the cost of insurance and reduces the likelihood of adverse selection, where only individuals who expect to incur high costs seek insurance. This approach allows for more favorable rates and coverage for all eligible participants, making it an essential criterion for establishing group life insurance coverage.

The other options presented do not reflect necessary conditions for obtaining a group life policy. For example, a group does not need to consist only of family members or have a majority of members with existing insurance, nor does it have to include individuals from different organizations. The critical factor remains the establishment of a minimum number of eligible participants.