Chapter exam- group life

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

converted to an individual permanent policy at an individual rate

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

employee

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

Everyone must be covered in the group

Company XYZ offers a group term life insurance plan to its employees. What does each employee covered under its plan receive?

Certificate of insurance

An employee with $25,000 group term life coverage was recently fired. This employees group coverage may be converted to a.

$25,000 individual whole life policy

A non-contributory plan requires ____ participation of all eligible employees

100%

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

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

contributory plan

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

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?

Portion of the premiums paid for by the employer may be a tax deduction