6) Group Life Insurance

What percentage of a companys employees must take part in a noncontributory group life plan?

100%

in order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured for how many years

5 years

which of the following is the required number of particpants in a contributory group plan

75%

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Attained age

Which of the following would be the beneficiary in credit life insurance?

Creditor

In group life policies, a certificate of insurance is given to

Each insured person

Two features that distinguish group insurance from individual insurance are

Evidence of insurabilitty is usually not required; Participants under the plan do not receive a policy because they do not own or control the policy.

Credit union or credit union trust groups

Group life policy may be issued to a credit union or to a trustee or trustees or agent designated by two or more credit unions

Which of the following is correct regarding credit life insurance?

It insures the life of a debtor

An employee is joing a group insurance plan. In order to avoid having to prove insurability, what must the employee do?

Join during the open enrollment period

Hunter cant join the group life insurance policy at her new job until she has been there for 3 months. this is called

Probationary period

An employee has group insurance through her employer. After 5 years she leaves the company and works independently. how can she obtain individual policy?

She can convert her group policy to an individual policy without proof of insurability within 31 days

In group life insurance who must sign the application

The employer or the head of the organization that is to be the policyowner

Probationary Period

The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

Group insurance is written as

annually renewable term insurance

Credit Insurance

any type of insurance that ensures repayment of a loan in the event the borrower is unable to repay it

Credit Life insurance

cannot pay out more than the balance of the debt

Most group life insurance is written as the type of term policy that must be renewed each year

coverage is usually provided as one year renewable term

Which types of insurance policies is most commonly used in credit life insurance.

decreasing term

Certificates of insurance

for individual insureds

The employee usually has 31 days after terminaiting from the group in order to exercise the conversion option

insurer will pay the full death benefit from the group policy to the beneficiary

Master contract

is for the employer

Labor Union Groups

issued to a labor union, or similiar organization to insure members of the organization for the benefit of persons

Group Life Insurance

issued to the sponsoring organization, and covers the lives of more than one individual member of that group

Eligibility period

period of time during which an eligible employee may ernoll in a nonmedical group coverage.

Debtor Groups

policy issued to a creditor or its parent holding company or to a trustee

Which is true regarding the insurance amount in a credit lfie policy

The creditor can only insure the debtor for the amount owed

All of the following are characterisitcs of group life insurance

premiums are determined by the age sex and occupation of each individual certificate holder

5 guys want to form a small gorup so they can qualify for group life insurance why are they rejected

purpose of the group was to purchase life insurance

If an employee wants to enter the group outside of the open enrollment period to reduce adverse selection the insurer may

require evidence of insurability

All of the following statements are true concerning debtor groups except

the amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor.

Which is incorrect concerning a noncontributory group plan

the employees receive individual policies

which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

those who have been insured under the plan for 5 years