When a group health insurance contract covers employees in more than one state, which factor is NOT used to determine in which state the contract may be delivered?

The correct choice is based on the principles governing multi-state group health insurance contracts. When a group health insurance contract covers employees across different states, determining the appropriate state for delivery of the contract is guided by factors that reflect the operational and administrative control of the policyholder rather than the insurer's incorporation state.

The policyholder's incorporation location, where their principal office is situated, and where the majority of insured individuals are employed each provide insight into the primary business operations and the intent of the policyholder regarding the group coverage. These factors relate directly to the areas affected by the insurance contract and the regulatory landscape that may apply based on the policyholder’s business model and employee locations.

In contrast, the location where the insurance company is incorporated does not influence where the policy should be delivered for a group health policy that spans multiple states. Insurers often operate in many states and have regulatory obligations in each. Thus, while the insurance company’s incorporation streamlines some aspects of regulation, it does not determine the legal framework under which the group policy is governed when evaluating the coverage delivery across multiple states.