Chapter 5: Group Life Insurance

Which type of policy can group term insurance normally be converted to?

An individual permanent life insurance policy.

Any employee insured under a group life insurance plan is normally

Covered with term life insurance

Which statement about group life insurance is INCORRECT?

Each participant requires evidence of insurability.

An employer has a group life coverage for his employees. How would an employee in poor health be treated in this situation?

Eligible for the same type of coverage as the other employees.

What are premiums for group credit life insurance based on?

Flat rate unrelated to the borrower's age.

What is an insurance contract that identifies individual by relationship to a specific organization?

Group Insurance

Which statement regarding the certificate of insurance is accurate?

It indicates evidence of an employee's insurance coverage

Group life insurance is typically issued as?

Level term insurance

Why do insurers require a minimum number of employees participate in a group insurance plan?

Minimize adverse selection

If an employer pays for accidentally death and dismemberment insurance for its employees, the amount paid by the employer is generally?

Tax deductible to the business