Chapter Exam - Group Life
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
Conversion (The conversion privilege allows an individual to leave the group term plan and continue his her insurance without providing evidence of insurability.)
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for a purpose other than acquiring insurance (Group life insurance can be formed just as long as they are formed for a reason other than purchase insurance.)
Which provision is NOT a requirement in a group life policy?
Accidental (An AD&D provision is not required in a group life policy)
Group life insurance polices are generally written as:
annually renewable term (Group life insurance policies are generally written as annually renewable term.)
Which of the following statements about noncontributory employee group life insurance is FALSE?
A minimum number of employees are required to a participate (Noncontributory employee group life insurance plans must cover ALL eligible employees at all times.)
A person who is insured within a group contract will be give a:
Certificate (A person who is insured within a group contract will be given a certificate.)
What type of group insurance plan involves employees sharing the cost?
Contributory plan (Employees share the cost of group insurance with an employer in a contributory plan.)
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
Full benefits are payable under the Master contract (An individual is covered under the group policy during the conversion period.)
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Employee (An employee would be a certificate holder under a trustee group life policy)
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 (In a contributory plan, the employer may file a tax deduction for its share of the premium costs.)