Chapter 6 exam - Group Life

Group Life insurance policies are generally written as A: A term rider B: Annually renewable term C: Increasing Term D: Group Whole Life

: Annually renewable term Group Life insurance policies are generally written as annual renewable term

Which of the following statements about noncontributory employee group life insurance is FALSE A: A minimum number of employees is required to participate B: All eligible employees must be covered C: No evidence of insurability required D: Must have conversion rights

A: A minimum number of employees is required to participate Noncontributory employee group life insurance must cover all eligible employees at all times

A person who is insured within a group contract will be given a: A: Certificate B: Master policy C: Participating Agreement D: Individual policy

A: Certificate A person who is insured within a group contract will be given a certificate

What type od group insurance plan involves employees sharing the cost? A: Contributory plan B: Non-contributory plan C: Qualified plan D: Non-qualified plan

A: Contributory plan Employees share the cost of group insurance with an employer in a contributory plan

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be A: Converted to an individual permanent policy at an individual rate B: Converted to an individual permanent policy at group rate C: Continued at an individual rate D: Continued at a group rate

A: Converted to an individual permanent policy at an individual rate In this situation, the insured can convert to a permanent policy at the individual rates

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 A: Portion of the premiums paid for by the employer may be tax deduction B: Portion of the premiums paid for by the employee may be a tax deduction C: Portion of the death proceeds are taxable to the beneficiary D: Portion of the death proceeds are taxable to the estate

A: Portion of the premiums paid for by the employer may be tax deduction In an contribution plan, the employer may file a tax deduction for its share of the premium costs

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a A: $125,000 individual whole life policy B: $25,000 modified whole life policy C: $25,000 individual term life policy D: $25,000 individual whole life policy

D: $25,000 individual whole life policy A terminated employee may convert to a $25,000 individual whole life policy

Which provision is NOT a requirement in a group life policy A: Conversion B: Grace period C: Incontestable period D: Accidental

D: Accidental An AD&D provision is not required in a group life policy

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? A: Noneligible B: Noncontributory C: Eligible D: Contributory

D: Contributory Employees share in the premium costs with contributory plans

What group term life feature an individual to depart from the group and continue to be converted without providing evidence of insurability A: Entire Contract B: Owner's rights C: Nonforfeiture options D: Conversion

D: Conversion The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability