Chapter 7 quiz

What percentage of eligible employees must be covered by a noncontributory group insurance plans?

100%

Which of the following statements about noncontributory employee group life insurance is FALSE?

A minimum number of employees is required to participate.

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.

When an employee is terminated, which statement about a group term life conversion is true?

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

What is a certificate of insurance?

A certificate issued to each individual covered by the group life insurance.

A person who is insured within a group contract will be given a

Certificate

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

Contributory

All of these are correct concerning group life insurane EXCEPT:

Whole life insurance is the form of insurance typically used in group life insurance.

Ann is an employee covered by a group life plan through her employer. When Ann is terminated, her employer fails to inform her about the plans conversion option. Two weeks later, Ann dies in an automobile accident. How will this situation be handled?

Full benefits must be paid by the insurer.

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

Converted to an individual permanent policy at an individual rate.