chapter 6- group life

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

Accidental.

Company XYZ offers a group term life insurance plan to its employees. What does each employee covered under this plan recieve?

Certificate of Insurance.

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

Contributory

What type of group insurance plan involves employees sharing the cost?

Contributory plan

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.

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

Employee.

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

Everyone must be covered in the group.

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

Nothing.

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.

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?

Portion of the premiums paid for by the employer may be a tax deduction.