Which of the following is NOT a ground for coverage denial for small employers?

Coverage denials for small employers generally follow specific criteria defined by insurance regulations. In this context, accidental death is not a valid reason for denying coverage. Accidental death typically refers to the cause of a claim rather than the eligibility or standing of the policyholder or their business.

When small employers seek insurance, they must be aware that other factors such as nonpayment of premiums, fraud or misrepresentation, and going out of business can indeed lead to coverage denial. For instance, nonpayment of premiums is a straightforward reason; if an employer does not pay their premiums, the coverage can be suspended or terminated. Fraud or misrepresentation presents a significant risk to insurers, as it involves providing false information during the application process, undermining the integrity of the insurance system. Lastly, if a business goes out of business, there may no longer be a need for coverage, leading to a termination of the policy.

Thus, among the given choices, accidental death stands out as an event related to individual claims rather than a basis for denying coverage to small employers. This clarifies why the initial selection is correct.