Ch. 7 Group Life Insurance
What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer? 0% 50% 75% 100%
100%
Which type of policy can group term life insurance normally be converted to?
An individual permanent life insurance policy
Any employee insured under a group life insurance plan is normally
Covered with term life insurance
An employer has a group life coverage for his employees. How would an employee in poor health be treated in this situation?
Eligible for the same type of coverage as the other employees
What is an insurance contract that identifies individuals by relationship to a specific organization?
Group insurance
The policy provision that permits an employee to change from a group plan to an individual plan is called the A. assignment provision B. conversion provision C. certificate provision D. modification provision
b
Which statement about group life insurance is INCORRECT? A. Cost can be shared between employer and employee B. Each participant requires evidence of insurability C. A minimum number of employees participating may be required D. Employer is issued a master policy
b
What are premiums for group life insurance based on?
flat rate unrelated to the borrower's age
which statement regarding the certificate of insurance is accurate?
it indicates evidence of an employee's insurance coverage
Group life insurance is typically issued as
level term insurance
Why do insurers require a minimum number of employees participate in a group insurance plan?
minimize adverse selection
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally
tax deductible to the business
The conversion option for group term insurance may be exercised by an employee
within 31 days of terminated employment