Chapter 6 Exam Review

When an employee is terminated, which statement about a group term life conversion is true? - Employee must convert group term life coverage into an individual term life policy - Policy proceeds will be paid if the employee dies during the conversion period.

Policy proceeds will be paid if the employee dies within the conversion period.

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

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

Group life insurance policies are generally written as:

annually renewable term

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

contributory plan

A non-contributory plan requires _______ participation of all eligible employees. - 25% - 50% - 75% - 100%

100%

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 it's employees share the cost of insurance, what type of group life insurance plan would a corporation have?

Contributory

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

A noncontributory group term life plan is characterized by

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