Modules 6 - Group Life Insurance

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 non-contributory plan requires ____ participation of all eligible employees

[] 100%

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

[] Accidental (AD&D)

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

[] Contributory plan

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

[] Employee would be a certificate holder

Which of the following is an important underwriting principal of group life insurance?

[] Everyone must be covered in the group

Which requirements must be met for an association to be eligible for a group life plan?

[] Group was formed for a purpose other than acquiring insurance.

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 *Employers cannot report additional taxable income to employees covered under a group life policy paid for by the employer.

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 non-contributory group term life plan is characterized by

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