Chapter 7 - Group Life Insurance

How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes?

Taxable income to the employee

Which of the following is NOT a characteristic of the conversion privilege?

Employer pays the premium for the converted policy

Who is issued a certificate of insurance with a group insurance policy?

Participant

All of the following are considered characteristics of group life insurance EXCEPT

individual policies

Jackie has just signed up to participate in her employer's franchise life insurance program. Which of the following statements is CORRECT?

As the "sponsor" of the program, her employer collects premiums from her and remits them to the insurance company.

Which of the following describes a contributory group insurance plan?

Part of the premium is paid by the employee

A terminated employee that has exercised the conversion privilege is able to convert

term group life coverage into permanent insurance

Which of the following is NOT a requirement for a terminated employee that has exercised the conversion privilege?

Provide proof of insurability

How does underwriting differ between group life and individual life insurance?

Medical questions must be answered on individual life insurance

Tim was recently terminated from his employment and opted to change his existing group term life insurance to individual permanent life insurance. What is this process called?

Conversion