Chapter 6 Exam - Group Life

When an employee is terminated, which statement about a group term life conversion is true?

Employee must convert group term life coverage into an individual term life policy Employee must provide evidence of insurability for conversion *Policy proceeds will be paid if the employee dies during the conversion period* Policy proceeds will NOT be paid if the employee dies during the conversion period

Which of the following statements about noncontributory employee group life insurance is FALSE?

*A minimum number of employees is required to participate* All eligible employees must be covered No evidence of insurability required Must have conversion rights

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* Group must establish a President Group must have at least 10 members Group was formed for the purpose of acquiring insurance

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* converted to an individual permanent policy at a group rate continued at an individual rate continued at a group rate

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

Corporation *Employee* Employer Labor union

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

*certificate* master policy participation agreement individual policy

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

Conversion Grace period Incontestable period *Accidental*

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

No benefits are payable under the Master contract *Full benefits are payable under the Master contract* Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy

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

Physical examinations are required *Everyone must be covered in the group* Employer must pay for the entire premium The group must be formed for the purpose of getting affordable insurance

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

Entire contract Owner's rights Nonforfeiture options *Conversion*