Chapter 7 exam Group Life

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

What percentage of eligible employees must be covered by noncontributory group insurance plans?

100%

what is a certificate of insurance

A certificate issued to each individual covered by the group life insurance

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

Ann is an employee covered by a Group Life plan through her employer. When Ann is terminated, her employer fails to inform her about the plan's conversion option. Two weeks later, Ann dies in an automobile accident. How will this situation be handled?

Full benefits must be paid by the insurer

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

A noncontributory group term life plan is characterized by:

The correct answer is "the entire cost of the plan is paid for by the employer". When an employer provides noncontributory group term life insurance, the employer pays the entire cost of the plan.

All of these are correct concerning group life insurance, EXCEPT:

Whole life insurance is the form of insurance typically used in group life insurance

Group life insurance policies are generally written as

annually renewable term

All individuals covered under a group contract will receive a(n)

certificate