Chapter Exam - Groups of 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

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

A noncontributory group term life plan is characterized by:

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

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

A noncontributory plan requires _______ participation of all eligible employees

100%

Which of the following statements about noncontributory employee group life insurance is FALSE?

A minimum number of employees is required to participate

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

Contributory

Group life insurance policies are generally written as:

annually renewable term

What type of group insurance plan involves employees sharing the cost?

contributory plan

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

conversion