Chapter 6 Exam Group life

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

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

Full benefits are playable under the Master contract

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

Accidental

Group life insurance policies are generally written as

annually renewable term

A non-contributory plan requires ____ participation of all eligible employees

100%

If a corporation pays the premium on a group life policy for its the employees, the corporation is required to report how much additional taxable income for each employee?

nothing

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

Certificate of insurance

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

Contributory

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

Contributory plan

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

Conversion

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

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?

Portion of the premiums paid for by the employer may be a tax deduction

All individual covered under a group contract will receive

certificate