POL California Life: Group Life Insurance, Retirement Plans, and Social Security Disability Program
Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?
Worker's occupation
What type of life insurance is most commonly used for group plans?
Annually renewable term
All of the following are characteristics of group life insurance, EXCEPT...
Premiums are determined by the age, sex and occupation of each individual certificate holder.
In a group life insurance policy, the employer may select all of the following EXCEPT...
The beneficiary
According to California law, all of the following may be covered as dependents under group life insurance EXCEPT...
The insured's elderly parents living with the insured.
Which of the following best describes the insurer's liability for losses arising from military service?
The insurer's liability may be reduced or excluded
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy-owner?
Third-party ownership
What is the number of credits required for fully insured status for Social Security disability benefits?
40
Who is a third-party owner?
A policy-owner who is not the insured
When an employee terminates coverage under a group insurance policy, coverage continues in force...
For 31 days
The minimum number of credits required for partially insured status for Social Security disability benefits is...
6 credits
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group.
All of the following are characteristics of a group life insurance plan EXCEPT...
There is a requirement to prove insurability on the part of the participants
If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is...
Fully insured
An association could buy group insurance for its member if it meets all of the following requirements EXCEPT...
Has at least 50 members
After an employee was laid off, he was informed of the right to convert the group coverage to an individual policy within 31 days. Twenty days into the conversion period, the employee suffered a heart attack and died before be could obtain individual coverage. What is the group policy insurer required to do?
The insurer must pay the death benefit under the former group coverage.
In order to qualify for conversion from a group life policy to an individual policy to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his...
Attained age
Vision, Inc. employs 500 people. The company offers group life insurance to its employees after 90 days of service. Who is considered the policy-holder of the life insurance policies Vision, Inc. offers?
Vision, Inc.
What is the limiting age for dependent children of the insured employee in a group life plan (other than disabled children)?
26
What percentage of a company's employees must take part in noncontributory group life plan?
100%
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required in noncontributory plans.
If a person is disabled at age 27 and meets Social Security's definition to total disability, how many work credits must she/he have earned to receive benefits?
12 credits
All of the following are examples of third-party ownership of a life insurance policy EXCEPT...
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
In a group life policies, a certificate of insurance is given to...
Each insured person
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance.
For a retirement plan to be qualified, it must be designed for the benefit of...
Employees
Social security benefits are available for a surviving spouse until the youngest child reaches age 16. Benefits are again available for the spouse after reaching age 60. What is the time period called during which of the surviving spouse does not receive benefits?
Blackout period
All of the following benefits are available under Social Security EXCEPT...
Welfare benefits
An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?
She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.
Which of the following is INCORRECT concerning a noncontributory group plan?
The employees receive individual policies
What is the official name for the Social Security program?
Old Age Survivors Disability Insurance
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may...
Require evidence of insurability
All of the following statements are TRUE concerning Debtor Groups EXCEPT...
The amount of insurance of the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor.
Within how many days of termination of employment must an employer give notice of the employee's right to convert the group policy to an individual policy?
15 days
Which of the following is the required number of participants in a contributory group plan?
75%
When employees are covered by group insurance, they receive...
A certificate of insurance.
All of the following could own group life insurance EXCEPT...
A group needing low-cost life insurance.
Selection of coverage in employee benefits plans refers to...
Employee choosing benefits
Which of the following is TRUE of a qualified plan?
It has a tax benefit for both employer and employee
An employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?
Join during the open enrollment period
Employer contributions made to qualified plan...
Are subject to vesting requirements.
Sarah becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirements must Sarah have met to receive Social Security disability benefits?
Sarah must have accumulated 6 work credits in the past 3 years.
Which of the following are generally NOT considered when underwriting group insurance?
The insureds' medical history
Which of the following is TRUE regarding a policy issued to a labor union insuring members of the organization for the benefit of persons other than the union or organization?
All of the above The members eligible for insurance under the policy must be all the members of the union or organization. The premiums for the policy must be paid either from funds of the union, or from funds contributed by the insured members specifically for their insurance, of from both. An insurer may exclude or limit the coverage on any person who provides unsatisfactory evidence of insurability to the insurer.
In a single employer group plan, what is the name of the policy issued to the employer?
Master contract
All of the following statements are true regarding group insurance EXCEPT...
Participants in the policy each receive a policy
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years.