Which type of coverage typically pays for only the current year's premium under a group health plan?

The choice of annual coverage is accurate because this type of insurance typically refers to a policy that is renewed every year. In the context of a group health plan, it specifically means that the coverage is in effect for a single year and is paid for on an annual basis. The premiums are usually calculated based on the current year's rates, and there is no long-term commitment beyond that one-year period.

Annual coverage provides flexibility for policyholders, as they can reassess their health insurance needs or switch plans at the end of the coverage term. This kind of arrangement is common in group health plans where employers may offer yearly benefits that can change based on the new plan options that may become available or adjustments based on health insurance market changes.

In contrast to annual coverage, the other types listed do not accurately reflect the time-limited nature of coverage that focuses solely on the current year's premium.