Chapter 5: Group Life
What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?
100%
Which type of policy can group term life insurance normally be converted to?
An individual permanent life insurance policy
The policy provision that permits an employee to change from group life coverage to an individual life policy is called the
Conversion provision
What are premiums for a group credit life insurance based on?
Flat rate unrelated to the borrower's age
Which statement regarding the certificate of insurance is accurate?
It indicates evidence of an employee's insurance coverage
Why do insurers require a minimum number of employees participate in a group plan?
Minimize adverse selection
If an employee pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally what?
Tax deductible to the business
Any employee insured under a group life insurance plan is normally
covered with term life insurance
Group life insurance is typically issued as
level term insurance
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employment