Which statement about noncontributory employee group life insurance is FALSE?

In the context of noncontributory employee group life insurance, the statement that all eligible employees are automatically covered is a fundamental feature of this type of insurance. Noncontributory plans require that the employer pays the entire premium, which means the employees do not have to contribute financially to their coverage. This absence of premium payments indicates that the employees are enrolled automatically, which aligns with option A being a true statement.

Also, since noncontributory plans cover all eligible employees regardless of health status, there is no requirement for individuals to prove insurability. Thus, option D accurately reflects this principle, emphasizing inclusivity in coverage.

On the other hand, option B states that a minimum number of employees is required to participate in noncontributory plans, which is not true. Noncontributory insurance can be offered to all eligible employees regardless of the group's size, as the program is funded entirely by the employer and not by employee participation levels.

So, the statement about a required minimum number of employees to participate is not consistent with the nature of noncontributory group insurance, making it the false statement regarding noncontributory employee group life insurance.