Chapter 6: Group life

Non-contributory plan requires what percentage of participation of all eligible employees

100 %

Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?

certificate of insurance

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

A $25,000 individual whole life policy

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

Contributory

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

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

All individuals covered Under a group contract will receive

Certificate

Which of the following statements about noncontributory employee group life insurance is false A A minimum number of employees is required to participate B All eligible employees must be covered C No evidence of insurability required D must have conversion rights

A A minimum number of employees is required to participate

And employee of 20 years recently retired at age 59 1/2. This employees group life contract can be A Converted to an individual permanent policy at an individual right B Converted to an individual permanent policy at a group rate C Continue that an individual right D Continued add a group rate

A Converted to an individual permanent policy at an individual rate

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

Employee

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

Everyone must be covered in the group

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

Full benefits are payable under the Master contract

A non contributory group term life plan is characterized by A The entire cost of the plan is paid for by the employer B The entire cost of the plan is paid for by the employee C The cost of the plan is shared by both employer and employee D both employer and employee must provide evidence of insurability

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

Group life insurance policies are generally written as A a term rider B annually renewable term C increasing term D group whole life

B annually renewable term

When an employee is terminated which statement about a group term life conversion is true A Employee must convert group term life coverage into an individual term life policy B Employee must provide evidence of insurability for conversion C policy proceeds will be paid if the employee dies during the conversion period D Policy proceeds will not be paid if the employee dies during the conversion period

C policy proceeds will be paid if the employee dies during the conversion period

What type of group insurance plan involves employee sharing the cost

Contributory

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

Conversion

Which provision is not a requirement in a group life policy A Conversion B Grace period C incontestable period D Accidental

D accidental

If a corporation pay 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