Under which circumstance can an insurance company offer group health insurance?

The correct choice indicates that an insurance company can offer group health insurance when there is an employer-employee relationship through the sponsoring group. This is based on the fact that group health insurance is typically designed to cover a defined group of individuals who share a common purpose, often provided as part of an employee benefits package. The employer is usually the policyholder, and the employees are the insured members.

In this context, the relationship allows for risk pooling, which enables the insurance company to offer coverage at a lower cost than individual policies. The shared risk among group members and the employee-employer dynamic create a structured framework for providing health coverage, promoting stability in the insurance market and benefiting both the employer and employees.

Other options might reflect scenarios involving group characteristics, but they do not pertain directly to the primary mechanism—an employer-employee relationship—that aligns with how group health insurance typically functions.