Chapter Exam - Group Life

Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?

Certificate of Insurance

Group life insurance policies are generally written as:

Annually renewable term

Which requirement must be met for an association to be eligible for a group life plan?

Group was formed for a purpose other than acquiring insurance

Which of the following statements about noncontributory employee group life insurance is FALSE?

A minimum number of employees is required to participate

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

Contributory

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

Conversion

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

Employee

Which of the following is an important underwriting principle of group life insurance?

Everyone must be covered in the group

When an employee is terminated, which statement about a group term life conversion is true?

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

A noncontributory group term life plan is characterized by:

The entire cost of the plan is paid for by the employer