Chapter 9: Group Life Insurance, Retirement Plans, and Social Security Disability Program

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?

100% participation of members is required in noncontributory plans

small group insurance

must be formed for a purpose other than attaining life insurance

which of the following are generally NOT considered when underwriting group insurance?

the insured's medical history

Employer contributions made to a qualified plan

are subject to vesting requirements

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

attained age

For a retirement plan to be qualified, it must be designed for the benefit of

employees

After being hired to deliver newspapers to his neighbors, a man is provided with $10,000 of life insurance by the newspaper. He would be covered under which kind of life insurance?

blanket life

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

the purpose of the group was to purchase life insurance

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6 credits

which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

third-party ownership