Chapter Exam- Group Life

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

100%

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

Accidental. An AD&D provision is not required in a group life policy.

If its employees share in 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 The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.

Which of the following is an important underwriting principle of group life insurance?

Everyone must be covered in the group

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

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

Nothing. Employers cannot report additional taxable income to employees covered under a group life policy paid for by the employer

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

All individuals covered under a group contract will receive a(n)

certificate

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

certificate of insurance