Chapter 5 - Group Life Insurance
Which type of policy can group term life insurance normally be converted to?
An individual permanent life insurance policy
The policy provision that permits an employee to change from group life coverage to an individual life policy is called the...
Conversion provision
An employee insured under a group life insurance plan is normally...
Covered with term life insurance
Which statement about group life insurance is INCORRECT?
Each participant requires evidence of insurability
An employer has a group like coverage for his employees. How would an employee in poor health be treated in this situation?
Eligible for the same type of coverage as the other employees
What are premiums for group credit life insurance based on?
Flat rate unrelated to the borrower's age
What is an insurance contract that identifies individuals by relationship to a specific organization?
Group insurance
Which statement regarding the certificate of insurance is accurate?
It indicates evidence of an employee's insurance coverage
Group life insurance is typically issued as
Level term insurance
Why do insurers require a minimum number of employees participate in a group insurance plan?
Minimize adverse selection
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally...
Tax deductible to the business
The conversion option for term insurance may be exercised by an employee...
Within 31 days of terminated employment
