Chapter Exam Group Life Insurance
Who is issued a certificate of insurance with a group insurance policy?
particpant
How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes
taxable income to the employee
A terminated employee that has exercised the conversion privilege is able to convert
term insurance into permanent insurance
Converting a group plan to permanent life insurance requires
the conversion being applied for within 31 days of termination
All of the following are considered characteristics of group life insurance, EXCEPT
individual policies
All of the following are characteristics of a Group Life Insurance Plan EXCEPT
individual underwriting
Employer-provided group term life insurance is exempt from income taxation up to
$50,000
Which of the following describes a contributory group insurance plan?
All of the premium is paid by the employer
A non-contributory health insurance plan helps the insurer avoid
adverse selection
What does the Group Life underwriting risk selection process help protect insurance companies from?
adverse selection
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
association or labor group
Which of these factors would an insurer consider when determining whether to accept a group life plan?
average age
Under a group life policy, the insurer will issue an individual ____ to the policyowner for delivery to each person insured.
certificate
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
certificate of coverage and benefits
An employee under a group insurance policy has the right to name a beneficiary and the right to
convert to an individual policy in the event of employment termination
Which of the following is NOT a characteristic of the conversion privilege?
employer pays the premium for the converted policy
The conversion privilege under a group life plan allows an employee to convert to a(n)
individual plan upon employment termination