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 converted to an individual permanent policy at a group rate continued at an individual rate continued at a group rate

converted to an individual permanent policy at an individual rate

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a $125,000 individual whole life policy $25,000 modified whole life policy $25,000 individual term life policy $25,000 individual whole life policy

$25,000 individual whole life policy

Which of the following statements about noncontributory employee group life insurance is FALSE? A minimum number of employees is required to participate All eligible employees must be covered No evidence of insurability required Must have conversion rights

a minimum number of employees is required to participate

Which provision is NOT a requirement in a group life policy? Conversion Grace period Incontestable period Accidental

accidental

Group life insurance policies are generally written as a term rider annually renewable term increasing term group whole life

annual renewable term

A person who is insured within a group contract will be given a certificate master policy participation agreement individual policy

certificate

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? Noneligible Noncontributory Eligible Contributory

contributory

What type of group insurance plan involves employees sharing the cost? contributory plan non-contributory plan qualified plan non-qualified plan

contributory plan

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? Entire contract Owner's rights Nonforfeiture options Conversion

conversion

Under a trustee group life policy, who would be eligible for a certificate of coverage? Corporation Employee Employer Labor union

employee

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? No benefits are payable under the Master contract Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy

full benefits are payable under the master contract

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 must establish a President Group must have at least 10 members Group was formed for the purpose of acquiring insurance

group was formed for a purpose other than acquiring insurance

Which of the following is an important underwriting principle of group life insurance? Physical examinations are required Everyone must be covered in the group Employer must pay for the entire premium The group must be formed for the purpose of getting affordable insurance

everyone must be covered in the group

When an employee is terminated, which statement about a group term life conversion is true? Employee must convert group term life coverage into an individual term life policy Employee must provide evidence of insurability for conversion Policy proceeds will be paid if the employee dies during the conversion period Policy proceeds will NOT be paid if the employee dies during the conversion period

policy proceeds will be paid if the employee dies during the conversion period - (31 days after date of termination; the group life coverage covers the individual)

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 Portion of the premiums paid for by the employee may be a tax deduction Portion of the death proceeds are taxable to the beneficiary Portion of the death proceeds are taxable to the estate

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

A noncontributory group term life plan is characterized by the entire cost of the plan is paid for by the employer the entire cost of the plan is paid for by the employee the cost of the plan is shared by both employer and employee both employer and employee must provide evidence of insurability

the entire cost of the plan is paid for by the employer