6/1 Quiz: Group Life Insurance

In most states, all group life insurance policies must adhere to the following legal requirements, EXCEPT:

A medical exam is not required by individuals applying for group life insurance coverage. The correct answer is: Individuals applying for coverage have to undergo a medical examination.

In employer-sponsored group insurance, the employer is the _______________, and the employee is the _______________.

In employer-sponsored group insurance, the employer is the policyowner and the employee is the insured. The correct answer is: Policyowner; insured

All of the following are true regarding the premiums for group life insurance, EXCEPT:

Premium rates for group life insurance are based on the group has a whole, not each individual. The correct answer is: Rates are based on the claims experience of each individual.

Tim's Toy Shop has gone bankrupt and needs to terminate all employees. Tim informs all employees of their right of conversion under the employer-sponsored group life plan. How many days are Tim's employees allotted to convert their group life coverage to individual coverage?

The conversion period is 31 days after termination from group coverage. This means the individual must apply for individual coverage within 31 days after the date of group coverage termination. The extension does not apply because Tim notified his employees of the conversion right. The correct answer is: 31 days

Which of the following is not a type of group life insurance?

Annuities are not life insurance. The correct answer is: Annuity

All of the following statements are false regarding issuance of group life insurance, EXCEPT:

Dependents are typically insurable under group life coverage. Most often, group life is issued in the form of annual renewable term. The cost of coverage is usually shared between the insured and the policyowner, and evidence of insurability is not required to renew coverage under group life. The correct answer is: Employer-sponsored group life insurance is usually annual renewable term.

All of the following statements are true of group life insurance contracts, EXCEPT:

Enrollees in a group life insurance plan usually do not have to provide proof of insurability. The correct answer is: Enrollees must provide proof of insurability.

Which statement is false regarding the conversion option for group life insurance?

Evidence of insurability cannot be required upon conversion. The correct answer is: Evidence of insurability is required for conversion.

All of the following are true regarding group term life insurance, EXCEPT:

Evidence of insurability is not required to renew coverage. The correct answer is: The policy is issued for one year and may be renewed annually with evidence of insurability.

All of the following are true regarding group life insurance contracts, EXCEPT:

Evidence of insurability must be provided if an eligible individual enrolls after the enrollment period. The correct answer is: Evidence of insurability is never required for enrollment.

Wholesale insurance covers:

Franchise or wholesale insurance is group insurance that covers members in a common group. Unlike most group insurance, there is not a master policyholder for franchise insurance. Instead, a group entity sponsors a plan where members pay premiums to the insurance company. The correct answer is: Members in a common group

Hank is covered by a group life insurance policy through work. If he is insured for $50,000, what is the maximum amount his wife can be insured for?

The amount of coverage for each covered dependent cannot exceed 50% of the insured member's coverage. Therefore, Hank's wife can be insured for a maximum of $25,000. The correct answer is: $25,000

What is the name of the document provided to subscribers evidencing group life insurance coverage?

The certificate of insurance is the evidence of coverage provided to individuals covered under group life insurance. The correct answer is: Certificate of insurance

Conversion from a group policy to an individual policy must be made within a maximum of how many days of termination from the group coverage?

The conversion period is limited to a maximum of 60 days from the date of group coverage termination. The correct answer is: 60

All of the following statements about group life insurance policy conversion privileges are false, EXCEPT:

An employee insured under group life insurance will automatically be covered during the conversion period regardless of whether conversion is elected. The correct answer is: Regardless of whether the employee elects conversion, death during the conversion period is covered.

Unlike group life insurance, insureds under franchise plans each receive:

Distinct from group insurance policies, individuals insured under franchise policies each receive their own individual policy. The correct answer is: Their own policy

All of the following are true of group life insurance policies, EXCEPT:

Evidence of insurability must be provided if an eligible individual for coverage enrolls after the enrollment period. The correct answer is: Evidence of insurability must be provided when an eligible individual enrolls.

Which of the following is life insurance that covers federal employees?

FEGLI is the Federal Employees Group Life Insurance and provides coverage to federal employees, retirees, and their family members. The correct answer is: FEGLI

All of the following are standard provisions for group life insurance policies, EXCEPT:

Group life insurance policies have a standard grace period of 31 days. The correct answer is: 10-day grace period

Which of the following is not a standard provision for group life insurance policies?

Group life insurance policies have a standard grace period of 31 days. The correct answer is: 5-day grace period

How long must an individual have been insured under the group life insurance plan in order to be eligible for the conversion privilege?

Group members must have been insured under the group life insurance plan for at least five years to be eligible to convert their group coverage to individual coverage. The correct answer is: 5 years

Jacob has been insured under his employer-sponsored group life insurance plan for seven years. He becomes totally disabled upon termination of his group coverage. Which of the following is true?

Group members who become totally disabled will be allowed to continue their group coverage for a maximum of six months after the onset of the total disability. The premium will not change. The correct answer is: Jacob must be permitted to continue group coverage for six months.

If employees are not notified of their right to conversion under a group life insurance policy, what is the MAXIMUM number of days allotted to convert to individual life insurance?

The conversion period is limited to a maximum of 60 days from the date of group coverage termination. The conversion period is limited to a maximum of 60 days from the date of group coverage termination. The correct answer is: 60

Which of the following statements is false regarding the conversion option for group life insurance policies?

The converted coverage must be whole life. The correct answer is: Converted coverage may be term or whole life, depending on the needs of the insured.

All of the following are true regarding the conversion option for group life insurance, EXCEPT:

The converted coverage must be whole life. The correct answer is: The converted coverage may be term or whole life.

What is the grace period for group life insurance policies?

The grace period for group life insurance is 31 days. The correct answer is: 31 days

All of the following are standard provisions under a group life insurance policy, EXCEPT:

The grace period under group life insurance policies is 31 days. The correct answer is: Grace period of 61 days

Eric dies 10 days after his employer-sponsored group life insurance coverage terminated, and he did not apply for individual coverage. Which statement is correct?

The insured is covered under the group policy during the conversion period. The full death benefit will be paid to Eric's beneficiary. The correct answer is: Eric's beneficiary will receive the full death benefit.

Serena dies 15 days after her group life insurance coverage is terminated. She did not apply for individual coverage. Which of the following is true?

The insured is covered under the group policy during the conversion period. The full death benefit will be paid to Serena's beneficiary. The correct answer is: Serena's beneficiary will receive the full death benefit.

All of the following statements are true regarding the ownership of group life insurance policies, EXCEPT:

The policyowner receives the master policy, and each insured receives a certificate of coverage. The correct answer is: The policyowner receives a certificate of coverage.