California Life – Limited to Funeral and Burial Insurance Practice Test 2026 - Free Practice Questions and Study Guide

In the context of group insurance, it is typically the business, organization, or civic group that pays the premium on behalf of its members. This structure allows individuals who are part of the group to obtain insurance coverage at a lower cost compared to individual policies since the risk is spread across a larger pool of participants.

By a group covering the insurance costs, it also makes it easier for individuals to access benefits, as they often do not have to worry about paying premiums directly. This can serve as a valuable employee benefit in workplaces or support members of community organizations. Members of the group usually see a portion of the premium deducted from their paychecks or might pay a small amount compared to what they would pay individually.

In contrast, individuals signed up for a plan would typically pay their premiums directly, which is not characteristic of group plans. A government agency may administer, subsidize, or provide insurance but does not typically pay premiums specifically for group insurance policies unless for specific public plans. An insurance broker does not pay premiums; instead, they facilitate the arrangements and may receive commissions based on the insurance sold. Therefore, the role of the business, organization, or civic group as the premium payer is the correct answer here.