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Group life insurance policies are generally written as |
annual renewable term |
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When an employee is terminated, which statement about a group term life conversion is true? Employee must convert group term life coverage into an individual term life policy Employee must provide evidence of insurability for conversion Policy proceeds will be paid if the employee dies during the conversion period Policy proceeds will NOT be paid if the employee dies during the conversion period |
policy proceeds will be paid if the employee dies during the conversion period – (31 days after date of termination; the group life coverage covers the individual) |
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If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? |
contributory |
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Which provision is NOT a requirement in a group life policy? |
accidental |
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Which requirement must be met for an association to be eligible for a group life plan? Group was formed for a purpose other than acquiring insurance Group must establish a President Group must have at least 10 members Group was formed for the purpose of acquiring insurance |
group was formed for a purpose other than acquiring insurance |
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Under a trustee group life policy, who would be eligible for a certificate of coverage? |
employee |
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An employee of 20 years recently retired at age 59 1/2. This employee’s group life contract can be converted to an individual permanent policy at an individual rate converted to an individual permanent policy at a group rate continued at an individual rate continued at a group rate |
converted to an individual permanent policy at an individual rate |
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A noncontributory group term life plan is characterized by the entire cost of the plan is paid for by the employer the entire cost of the plan is paid for by the employee the cost of the plan is shared by both employer and employee both employer and employee must provide evidence of insurability |
the entire cost of the plan is paid for by the employer |
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Which of the following is an important underwriting principle of group life insurance? Physical examinations are required Everyone must be covered in the group Employer must pay for the entire premium The group must be formed for the purpose of getting affordable insurance |
everyone must be covered in the group |
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S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? No benefits are payable under the Master contract Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy |
full benefits are payable under the master contract |
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Which of the following statements about noncontributory employee group life insurance is FALSE? A minimum number of employees is required to participate All eligible employees must be covered No evidence of insurability required Must have conversion rights |
a minimum number of employees is required to participate |
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What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? |
conversion |
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Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? Portion of the premiums paid for by the employer may be a tax deduction Portion of the premiums paid for by the employee may be a tax deduction Portion of the death proceeds are taxable to the beneficiary Portion of the death proceeds are taxable to the estate |
portion of the premiums paid for by the employer may be a tax deduction |
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What type of group insurance plan involves employees sharing the cost? |
contributory plan |
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An employee with $25,000 group term life coverage was recently fired. This employee’s group coverage may be converted to a |
$25,000 individual whole life policy |
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A person who is insured within a group contract will be given a |
certificate |
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