7 - (Questions) Group Life Insurance

Which of the following describes a contributory group insurance plan?

A contributory group insurance plan is one in which employees share the cost of the premiums with the employer.

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

individual policies

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

All of these statements about the conversion privilege are true EXCEPT "Employer pays the premium for the converted policy".

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

One difference between group and individual life insurance underwriting is that medical questions must be answered on individual life insurance.

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

The IRS requires the cost of employer-provided group life insurance above $50,000 to be taxable as income to the employee.

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

The participant is issued a certificate of insurance with a group insurance policy.

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

Individual Policies

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

Provide Proof of insurability. A terminating employee who wants to exercise the conversion privilege must meet all of these requirements EXCEPT supply evidence of insurability.

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

term group life coverage into permanent 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?

Changing group term insurance into an equal amount of individual permanent coverage is called a conversion.