NWM Chapter 5 review

What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?

100%

Which type of policy can group term life insurance normally be converted to?

An individual permanent life insurance policy

Which statement about group life insurance is INCORRECT?

Each participant requires evidence of insurability

An employer has a group life coverage for his employees. How would an employee in poor health be treated in this situation?

Eligible for the same type of coverage as the other employees

What are premiums for group credit life insurance based on?

Flat rate unrelated to the borrower's age

What is an insurance contract that identifies individuals by relationship to a specific organization?

Group insurance

Which statement regarding the certificate of insurance is accurate?

It indicates evidence of an employee's insurance coverage

Why do insurers require a minimum number of employees participate in a group insurance plan?

Minimize adverse selection

The policy provision that permits an employee to change from group life coverage to an individual life policy is called the

conversion provision

Any employee insured under a group life insurance plan is normally

covered with term life insurance

Group life insurance is typically issued as

level term insurance

If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally

tax deductible to the business

The conversion option for group term insurance may be exercised by an employee

within 31 days of terminated employment