CHAPTER 7 LIFE INSURANCE
certificate
Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.
Average age (An insurer would consider the average age when determining whether to accept a group life plan)
Which of these factors would an insurer consider when determining whether to accept a group life plan?
adverse selection ( Because all eligible employees are usually covered, noncontributory plans are desirable from an underwriting standpoint because adverse selection is minimized.)
A non-contributory health insurance plan helps the insurer avoid
association or labor group
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
convert to an individual policy in the event of employment termination ( A person whose life is insured under a group insurance policy has the right to designate a beneficiary and the right to have an individual policy issued in the case of termination of employment.)
An employee under a group insurance policy has the right to name a beneficiary and the right to
the conversion being applied within 1 month of termination
Converting a group plan to permanent life insurance involves
Certificate of coverage and benefits (The certificate of coverage and benefits describes the coverage, conditions, and limitations found in the master policy of a group contract.)
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
Conversion (Conversion is when an insured individual changes his or her group insurance to an individual policy with the same insurer at the termination of employment.)
Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?
individual plan upon employment termination
The conversion privilege under a group life plan allows an employee to convert to a(n)
Certificate of coverage and benefits
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
Adverse selection (Adverse selection is the tendency of less favorable insurance risks to seek or continue insurance to a greater extent than others.)
What does the Group Life underwriting risk selection process help protect insurance companies from?
