Group Life Insurance

Certificate of Insurance

A brief description of insurance coverage prepared by an insurer or its agent and commonly used by policyholders to provide evidence of insurance. The employer holds the policy while the employees get the certificate.

association or labor group

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)

Individual underwriting

All of the following are characteristics of a group life insurance plan EXCEPT

Conversion Privilege

Allows the policy owner, before an original insurance policy expires, to elect to have a new policy issued that will continue the insurance coverage. Conversion may be effected at attained age (premiums based on the age attained at time of conversion) or at original age (premiums based on age at time of original issue).

noncontributory plan

Employee benefit plan under which the employer bears the full cost of the employees' benefits; must insure 100% of eligible employees.

Average Age

Factors an insurer would consider when determining whether to accept a group life insurance plan.

Contributory Plan

Group insurance plan under which the employees contribute to the payment of premiums.

individual plan upon employment termination

The conversion privilege under a group life plan allows an employee to convert to a(n)

Certificate of coverage and benefits

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

Master Policy

The policy contract issued to the employer under a Group insurance plan. Remember, the employees covered by a group plan are considered to be insureds, but they only receive certificates.

Conversion

When an insured individual changes his or her group insurance to an individual policy with the same insurer at the termination of employment.

A non-contributory health insurance plan helps the insurer avoid

adverse selection

Blanket Health Policies

are issued to cover a group who may be exposed to the same risks, but the composition of the group (the individuals within the group) are constantly changing. A blanket health plan may be issued to an airline or a bus company to cover its passengers or to a school to cover its students. No certificates of coverage are issued in a blanket health plan, as compared to group insurance.

Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.

certificate

An employee under a group insurance policy has the right to name a beneficiary and the right to

convert to an individual policy in the event of employment termination .

Franchise Insurance

provides health coverage for small groups whose numbers are too small to qualify for true group insurance

Converting a group plan to permanent life insurance requires

the conversion being applied for within 31 days of termination

Persistency

the percentage of policies an insurer has in force after a specified period of time