Under a Contributory insurance plan, what percentage of eligible employees must be included?

In a Contributory insurance plan, it is generally required that a specific percentage of eligible employees participate in the plan for it to be effective. The correct answer, 75%, indicates that to maintain the plan, at least three-quarters of eligible employees must contribute towards their premiums. This requirement is in place to ensure a sufficient risk pool and financial viability of the insurance coverage offered.

When a higher percentage of employees participate, it mitigates the risk for insurers, as the likelihood of claims spreading across a larger group is statistically more manageable. Because of this, it's common in many insurance structures to establish a threshold that balances participation with affordability for the employees involved. The requirement for 75% participation helps to ensure that only serious interest is sustained in the plan, thereby promoting a stable risk pool.