Group Life Insurance - Chapter 6

A noncontributory group term life plan is characterized by:

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

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

Certificate of insurance

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?

Nothing

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 conversation period

Group life insurance policies are generally written as:

annually renewable term

All individuals covered under a group contract will receive a(n)

certificate

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

A minimum number of employees is required to participate

Which provision is NOT a requirement in a group life policy?

Accidentally

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

Conversion

What type of group insurance plan involves employees sharing the cost?

contributory plan