What type of insurance plan is issued to an employer where both the employer and employees share the cost?

The correct answer is a contributory plan, which is a type of insurance plan where both the employer and the employees contribute to the cost of the premiums. This shared approach allows employees to have some level of involvement in their insurance coverage, as they typically pay a portion of the premium through payroll deductions. Contributory plans also tend to be more affordable for employers, as they can offset some of the total cost by requiring employee contributions.

In contrast, a non-contributory plan is fully funded by the employer, with no contributions required from employees. A group plan refers more broadly to the arrangement of covering multiple individuals under one insurance policy, which can be either contributory or non-contributory. An employer-paid plan typically implies that the employer covers the entire premium without any cost-sharing from employees, which also does not apply here. Thus, the distinction of the contributory plan is significant because it highlights the cost-sharing aspect between the employer and its employees.