Group Life Insurance Plans
If an employee has a term life insurance policy of $50,000, what is the maximum that can be written for his spouse?
$50,000
What maximum amount of employer-provided group-term life insurance is tax-free (excluded from an employee's income)?
$50,000
What form of insurance is usually found in Group Life Insurance?
1 year term
The MINIMUM number of employees for group life insurance in
2
Group insurance law stipulates that an incontestability period be provided to the applicant. The time period is:
2 years
Dependent children are eligible for coverage under the employee's group life insurance policy through age:
26
Which of the following statements concerning a contributory group life program is true?
75% of eligible employees must participate
All of the following are eligible for dependent coverage under an employer's group life insurance policy EXCEPT:
All unmarried grandchildren under age 21
A group insurance plan is contributory when the:
Employee pays part of the premium
What is required of the insured to attain group insurance coverage and not have to provide evidence of insurability?
Enrollment must occur during an eligibility period
The conversion privilege of terminating employee would be:
Group life to term
All of the following are examples of policy exclusions frequently found in life insurance to reduce exposure to higher than average risks, EXCEPT:
Incontestability
What is one difference between group life and individual life underwriting?
Individual life insurance requires the applicant to answer medical questions
A significant benefit to the insured in group underwriting versus individual is:
Previous claims are not a consideration
What are the tax consequences when an employer provides an employee with more than $50,000 of coverage under the employer's group life insurance plan?
The cost of the coverage in excess of the first $50,000 will be included as income and appear on the employee's W-2
Certificates of insurance are issued to employees covered under group plans. These certificates may not contain which of the following?
The premium
If a dependent child covered by a group life plan is incapable of self-support, coverage under the plan may continue up to age:
any age
In a group insurance policy acts of war and aviation are considered examples of:
exclusions
A group life policy is issued on a contributory basis. This means that the
insured employees will pay part of the premium
An employer allows each employee to choose insurance in addition to the basic insurance plan. Who pays the premium for the voluntary life insurance?
only the employees who choose to purchase it
A terminating employee who wants to exercise the conversion privilege must meet all of the following requirements EXCEPT:
supply evidence of insurability
Who pays the premiums for voluntary group life insurance benefits made available through an employer?
the employee
In a group life insurance policy who are the parties to the master contract?
the insurer and the employer
Regarding life insurance coverage for a company, the one responsible for obtaining the coverage, maintaining the policy, and paying the premium is:
the master policyholder
In a group life insurance, who is issued a certificate of insurance?
the participant
