Chapter 6 - Group Life Insurance

Which of the following statements about noncontributory employee group life insurance is FALSE? - a minimum # of employees is required - all eligible employees must be covered - no evidence of insurability required - must have conversion rights

- a minimum # of employees is required

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

conversion

Under a trustee group life policy, who would be eligible for a certificate of coverage? corporation employee employer laber union

employee

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a: - $125,000 individual whole life policy - $25,000 modified whole life policy - $25,000 individual term policy - $25,000 individual whole life policy

- $25,000 individual whole life policy

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

- converted to an individual permanent policy at an individual rate

Which provision is NOT a requirement in a group life policy? conversion grace period incontestable period accidental

accidental

Group life insurance policies are generally written as: a term rider annually renewable term increasing term group whole life

annually renewable term

A person who is insured within a group contract will be given a certificate master policy participation agreement individual policy

certificate

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

contributory

What type of group insurance plan involved employees sharing the cost? contributory plan noncontributory plan qualified plan non qualified plan

contributory plan

S, while in the process fo converting her group life insurance policy to an individual policy, dies. What happens to the claim her beneficiary submits? - no benefits are payable under master contract - full benefits are payable under master contract - full benefits are payable under converted policy - benefits - required premium are payable under converted policy

- full benefits are payable under master contract

A noncontributory group term life plan is characterized by: - the entire cost of the plan is paid for by the employer - the entire cost of the plan is paid for by the employee - the entire cost of the plan is paid for by the employer - the cost of the plan is shared by employer/employee - both employer/employee must provide evidence of insurability

- the entire cost of the plan is paid for by the employer

Which requirement must be met for an association to be eligible for a group life plan? - group wad 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

- group wad formed for a purpose other than acquiring insurance

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

- policy proceeds will be paid if the employee dies during the conversion period ** an individual has a conversion period of 31 days and is covered under the group policy during that time

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 - portion of the premiums paid for by the employee may be a tax deduction - portion of the death proceeds are taxable to the beneficiary - portion of the death proceeds are taxable to the estate

- portion of the premiums paid for by the employer may be a tax deduction