6 - Group Life Insurance

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

Under a trustee group life policy, who would be eligible for a certificate of coverage?

Employee

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 type of group plan involves employees sharing the cost?

contributory plan

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a

$25,000 individual whole life policy

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

Contributory

A noncontributory group term life plan is characterized by

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

Group life insurance policies are generally written as

annually renewable term

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

certificate

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

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

Accidental

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

Conversion