Chapter 8 Exam

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 An individual must apply for individual permanant coverage within 31 days after the date of group coverage termination. An individual is covered under the group policy during the conversion period.

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 An individual must apply for individual permanent coverage within 31 days after the date of group coverage termination. An individual is covered under the group policy 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

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

The conversion feature allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.

A noncontributory group teen life plan is characterized by

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

Group life insurance policies are generally written as

annually renewable term

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

certificate of insurance

What type of group insurance plan involves employees sharing the cost

contributory plan

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 An employee would be a certificate holder under a trustee group life policy

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

Which of the Following statements about noncontributory employee group life insurance is false

A minimum number of employees is required to participate

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

Accidental (AD&D)

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

Conversion The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.

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

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 An individual is covered under the group policy during the conversion period

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

$25,000 individual whole life policy

Which provisions are a requirement in a group life policy?

1. Conversion 2. Grace period 3. Incontestable period

What of the Following statements about noncontributory employee group life insurance is true

1. All eligible employees must be covered 2. No evidence of insurability required 3. Must have conversion rights

A noncontributory plan requires ______ participation of all eligible employees

100%

If it's employees Share in the cost of insurance, what type of group life insurance plan would a corporation have

Contributory

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

Contribuatroy

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

Employee An employee would be a certificate holder under a trustee group life policy

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

Everyone must be covered in the group Or a large percentage of persons in the group must be covered by the insurance

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