Chapter 5: Group Life Insurance
Eligible for the same type of coverage as the other employees
An employer has a group life insurance plan in place for his employees. How would an employee in poor health be treated in this situation?
protected by term life insurance
Any employee insured under a group life insurance plan is normally
tax deductible to the business
If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally
within 31 days of terminated employment
The conversion option for group term insurance may be exercised by an employee
conversion provision
The policy provision that permits an employee to change from a group plan to an individual plan is called the
Flat rate unrelated to the borrower's age
What are premiums for group credit life insurance based on?
Adverse selection is minimized
What is the reason that insurance companies require a minimum number of employees participating in a group insurance plan?
Group insurance
What is the term used for an insurance contract that identifies individuals by relationship to a specific organization?
100%
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?
An individual permanent life insurance policy
What type of policy can group term life insurance normally be converted to?
Each participant requires evidence of insurability
Which statement about group life insurance is INCORRECT?
Indicates evidence of an employee's insurance coverage
Which statement regarding the certificate of insurance is accurate?