All of the following are true of participants in multiple-employer trusts EXCEPT
A. They are usually small employers
B. They are issued a joinder agreement
C. They are usually in the same industry group
D. They are required to buy all coverages the trust offers
Answer (2)
Participants in multiple-employer trusts are typically small employers, belong to the same industry group, and sign joinder agreements. However, they are not mandated to purchase all available coverages from the trust, making that statement false. Therefore, option D is the exception among the listed statements. ;
The exception among the statements is that participants in multiple-employer trusts are not required to buy all offered coverages, choosing instead based on their needs. Participants are typically small employers, sign a joinder agreement, and are usually from the same industry. Hence, the correct answer is D.
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