Chapter 6 quiz

Which of the following is an important underwriting principal of group life insurnce Physical examinations are required Everyone must be coverd employers must pay for the entire premium the group must be formed for the purpose of getting affordable insurance

Everyone must be coverd

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

All individual covered under a group contract will receive

certificate

Under a trustee group life policy, who would be eligible for a certificate of coverage?

Employee

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

contributory

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 invidual rate

S while in the process of coverting her group life insruance to an individual policy dies what happens to the claim her beneficary submits

full benefits are paid under the master contract

An employee with 25,000 group term life was recently fired. The employees group coverage may be converted to a

25,000 individual whole life policy

Which requirement must be met for an association to be eligible for a group life plan? Group was fromed for a purpose other than acquireng insurance group 1must establish a president group must have at least 10 memebers Group was formed for the purpose of acquiring insurance

Group was formed for the purpose of acquiring insurance

A noncontributory group term life plan is characterized

the entire cost of the plan is paid by the employer

If a corporation pays the premium on a group life policy for its employees the corporation is required to report how much additional taxable income for each employee

zero

Which provision is NOT a requirement in a group life policy? conversion grace period incontestabel period accidental

Accidental

When employee is terminated which statement about group term conversion is correct

Policy procees will be paid if the employee dies during the conversion period

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 premium paid by the employer may be tax deductiable

Company xyz offers a group term life insurance plan to its employees What does each employee covered under this plan receive master policy receipt of coverage individual policy certificate of insurance

certificate of insurance

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

conversion