Consumer Behavior Test #2 Ch. 6-9

Which of the following is the required number of participants in a contributory group plan?

75%

When an employee terminates coverage under a group insurance policy, coverage continues in force

31 days

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.

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

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.

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.

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5 years

What type of life insurance is most commonly used for group plans?

ART

Who is a third-party owner?

A policyowner who is not the insured