Group life insurance
In a group carve-out plan, universal life insurance is used to replace group term life insurance in excess of what amount?
$50,000
If a group insurance benefit schedule calls for a benefit of three times salary, a worker earning $24,000 a year will receive life insurance coverage equal to what amount?
72,000
MegaMutual is performing group life insurance underwriting for a proposed group of Food Brokers, Inc. employees. Which of the following factors will normally not be considered in the insurer's risk selection decision?
All the female emplyees / All of the employees of Food Brokers, Inc. are female.
Anna is covered by a $100,000 group term life insurance policy, while her twin sister, Bethany, is covered by a $100,000 individually owned term life insurance policy. Based only on these facts, which statement about their coverage is true?
Anna's premium will likely be lower / The premium for Anna's group term policy will likely be lower than the premium for Bethany's policy.
Calvin started working for ABC Technology, Inc. on June 1 and became eligible to enroll in its group term life insurance plan on July 1. He initially declined to enroll in the group plan but then changed his mind three months later after the enrollment period ended. Which statement is true?
Calvin can join if he can show insurability
Which of the following cannot be designated as a beneficiary under a group term life insurance plan?
a friend
Group insurance refers to a variety of insurance products available to people who collectively belong to which of the following?
a natural group
Which of the following is not a permissible group term life insurance benefit schedule?
benefit based on gender
With regard to accelerated benefits under a life insurance policy, which of the following statements is true?
can only be paid out in monthly payments
Hector died in a skydiving accident, and his group term life insurance plan paid an accidental death and dismemberment benefit of $100,000 benefit to his beneficiary. Which of the following did the beneficiary receive?
capital sum
What are group insurance plans that require a premium payment from covered employees called?
contributory
An employer can deduct premiums paid for which of the following?
group term
What amount of coverage is typically available under a supplemental group term life insurance plan?
set dollar amount from IRS
All of the following are disadvantages of group term life insurance EXCEPT:
the stringent individual participate underwriting
Two weeks after starting work at WMT Corporation, Serena was diagnosed with cancer. Will she be able to enroll in WMT's group term life insurance plan, if she enrolls when first eligible?
yes individual insurability is not considered / yes but for a higher premium
Shirley is a participant in her employer's group life insurance plan even though she was uninsurable when she entered the group. She is terminating her employment to enter hospice since her physician has certified her as having four months to live. If she wants to convert her $500,000 of life insurance coverage, how much of the coverage can she convert without having to provide evidence of insurability?
500,000
Mary's group term life insurance plan benefit is $300,000, for which her employer pays $70 monthly. Mary named her employer as the primary beneficiary and her son Hector as the contingent beneficiary. How much of that monthly premium is deductible by her employer?
70
Lois wants to enroll in a group life insurance plan that offers fixed premiums and provides the strongest guarantees available, including guaranteed cash values. Which of the following types of group life insurance would meet her objective?
group whole life insurance / group universal life insurance
Laura's group term life insurance plan has an accidental death and dismemberment provision. Which of the following would not be covered under the plan?
heart disease
Amanda works full-time for Blackstone Inc. and is covered by its group term life insurance plan, which contains an age reduction schedule. What is likely to happen to her group coverage once she reaches age 65 later this year?
her coverage will terminate
What problem with group term life insurance is overcome by group universal life insurance?
high group term insurance rates
Grayson is covered by Arch Corporation's group term life insurance plan, which contains a waiver of premium provision. After being injured in a car accident, Grayson cannot work. What will happen to Grayson's group term life insurance coverage?
it will continue without premium payments
BBX Industry purchased a group term life insurance policy from Long Life Insurance Company that provides $50,000 in group term life insurance coverage for each of its 100 employees. Which statement about the administration of BBX Industry's group plan is true?
long life insurance must issue a master policy to each participant / BBX Industry will send a single monthly premium payment to Long Life Insurance covering all plan participants.
Most group term life insurance plan beneficiaries receive the death benefit proceeds under which of the following settlement options?
lump sum
With group life insurance, what is the name of the one policy that is issued to the policyowner?
master contract
American Corporation has sponsored a group life insurance plan for its 2,500 employees for the past 25 years. Best Insurers bases the premiums for American Corporation's group life plan on the company's own mortality experience. Which approach to premium pricing is Best Insurers using?
mortality rating
Charles is covered by a group life insurance plan that has a $100,000 death benefit. What is the maximum amount that he can receive as an accelerated benefit, if the plan includes an 80 percent accelerated benefit provision?
$80,000
Debbie took a $5,000 loan under her employer's group whole life insurance plan when her cash value was $6,000. How much of the loan, if any, is she required to include in income for tax purposes this year?
0
What is the minimum number of full-time employees generally required before a group term life insurance policy will be issued?
10
Calvin started working for ABC Technology, Inc. on June 1 and became eligible to enroll in its group term life insurance plan on July 1. He initially declined to enroll in the group plan but then changed his mind three months later after the enrollment period ended. Which statement is true?
10,000
Ellen's employer's group term life insurance plan provides her with $500,000 of life insurance coverage, for which her employer pays $100 monthly. Her husband is the beneficiary. How much of that monthly premium is deductible by her employer?
100
Eureka Labs, Inc. plans to establish a noncontributory group term life insurance plan for its 50 full-time employees. What minimum percentage of the eligible full-time employees must participate?
100%
What is the minimum percentage of eligible employees who must be covered under a group term life insurance plan for which the employer is paying all premiums?
100%
Blackstone Inc. is applying for group term life insurance for its 100 full-time employees. Since the plan will be contributory, what minimum percentage of eligible full-time employees normally must participate?
100% / 70%
Harry is employed by a local hospital as an emergency room physician and also works for a medical group as a pediatrician. He is covered by $100,000 of group term life insurance under each employer's plan, for a total of $200,000 in coverage. How much of his coverage will result in imputed income for him?
100,000
Timson Industries pays all of the premiums for its group term life insurance plan. If Timson Industries has 20 employees who are eligible for the coverage, how many of them must be included in the plan?
15
Audrey's group term life insurance amount resulted in imputed income of $2,400. How much imputed income would she be required to recognize if she contributed $2,000 annually to the cost of her group term life insurance during the year?
2,000
Timson Industries pays all of the premiums for its group term life insurance plan. If Timson Industries has 20 employees who are eligible for the coverage, how many of them must be included in the plan?
20
Brent decided to request an accelerated benefit from his $100,000 group life insurance policy, due to his terminal illness. The policy provides for an acceleration of up to 80 percent of the death benefit, and he requests the full amount available, or $80,000. When Brent passes away a few months later, the insurance company pays the remaining death benefit to his beneficiary. How much will this be?
20,000
Alma Suppliers, Inc. wants to sponsor a group term life insurance plan for its eight full-time employees. To be eligible for coverage, what minimum percentage of Alma's full-time employees must be covered under the group term life insurance plan?
50% / 70%
What, if anything, is typically required before an employee becomes eligible to participate in a group term life insurance plan?
The participant must be actively at work.
Which of the following is the most common method of determining the amount of death benefits for group term life insurance plan participants?
fixed amounts for all employees
Elena's group term life insurance plan was just terminated by her employer. If she had $50,000 in coverage, she would typically have the right to convert what amount of coverage to a permanent policy?
50,000
Emma is terminating her employment at the end of the current month and will lose her $100,000 of group term life insurance. What is the maximum period that she may wait before converting her coverage to an individual life insurance policy under the group policy's conversion privilege?
31 days
Arthur has $250,000 in employer-provided group term life insurance coverage. What amount of the coverage is provided tax free to him?
250,000
Harry is leaving BigBux Brokerage to join a competitor. What is the maximum amount, if any, of his current $250,000 group term life insurance coverage can he convert?
250,000
Kendra is a new employee at Blackstone Corporation and plans to participate in its group life insurance plan. After she signs up, what will she receive as evidence of her insurance coverage?
Certificate of insurance
Jeremy's group term life insurance plan includes an accidental death and dismemberment provision, which pays $100,000 as a death benefit and 66 percent of this amount if he loses an arm or leg. Jeremy is then injured in a work accident and receives $66,000 for losing his arm. What type of benefit did Jeremy receive under the policy?
Dismemberment amount
Which statement about group permanent life insurance is true?
Group permanent life insurance builds cash value.
Amanda works full-time for Blackstone Inc. and is covered by its group term life insurance plan, which contains an age reduction schedule. What is likely to happen to her group coverage once she reaches age 65 later this year?
Her coverage will typically be reduced by a certain percentage until she retires.
Edmund, Kelsey, Burt, and Alicia each participate in a group life insurance plan. Which of these individuals is insured under a policy where the cash value is guaranteed to equal the face amount of the coverage at some point?
Kelsey who is insured under a group whole life policy
Michael is a new employee at Stonewall Corporation and just learned that he must wait 60 days before he can enroll in the company's group term life insurance plan. What is the most likely reason why Michael must wait before he's eligible for coverage?
Probationary period / Stonewall Corporation's group term life insurance plan contains a probationary period for new employees.
Pauline is the insured under a group life insurance plan with a $200,000 death benefit. The policy will accelerate up to 70 percent of the policy's death benefit if the insured is diagnosed as terminally ill. At the age of 59, Pauline is diagnosed as terminally ill and takes $140,000 from the policy as an accelerated benefit. She dies one year later, and the $60,000 remaining death benefit is paid to her husband Jarrod as the policy's beneficiary. How are these two payments treated?
The 140,00 tax free and 60,000 taxed
Once a group life insurance policy has paid out an accelerated benefit to an insured, what happens to any death benefits that remain in the policy?
They are payable to the policy beneficiary when the insured dies.
Baker just left his job at Luna Company and doesn't have a new job yet. Which provision in his group term life insurance policy will allow him to purchase and continue his coverage under Luna's plan?
continuation provision
Morris is the insured under a group life insurance policy that has an accelerated benefits provision. When Morris was determined by his physician to be unable to move without assistance and needed help bathing, he qualified for the policy's accelerated benefit. What type of accelerated benefit did this policy include?
critical illness
Which party pays the premium for supplemental group term life insurance?
employee
The most common type of group insurance covers which of the following?
employee groups
Jaclyn has $50,000 in group term life insurance coverage through her employer's group plan. The plan also makes coverage available to Jaclyn's spouse and dependent child. Which statement about her dependents' coverage is true?
entitled to same amount of coverage
The conditions for which a life insurance policy commonly pays accelerated benefits include all of the following EXCEPT:
financial hardship
Randy's group term life insurance plan includes an accidental death and dismemberment provision. The plan will typically exclude accidental injuries resulting from all of the following EXCEPT:
performance of randy's normal occupation
Carl's employer has established a group permanent life insurance plan under which plan participants may purchase life insurance death benefits of up to three times salary but not exceeding $500,000. Although Carl's salary is $50,000, he is interested in purchasing life insurance with a death benefit of $250,000. What is likely to occur when Carl requests the higher level of coverage?
provide evidence of insuribility
Which of the following is an advantage of supplemental group term life insurance?
spouses and dependents can obtain coverage
Kathy has decided not to pay the premium that's due for her group universal life insurance coverage. What will occur with respect to her coverage?
the coverage will lapse
What is the result if the employer is named beneficiary of group term life insurance coverage?
the employer can take an income tax deduction
Brenda has $100,000 in group term life insurance coverage from her employer, which pays the entire premium. What are the tax consequences if Brenda names a charity as the irrevocable beneficiary of her policy?
the employer cannot take income tax
The amount of benefit payable under an accidental death and dismemberment provision in a group term life insurance plan will vary, depending on which factor?
the extent of the insured's loss or injury
Carl's employer has established a group permanent life insurance plan under which plan participants may purchase life insurance death benefits of up to three times salary but not exceeding $500,000. Although Carl's salary is $50,000, he is interested in purchasing life insurance with a death benefit of $250,000. What is likely to occur when Carl requests the higher level of coverage?
the insurer will request evidence
All of the following contribute to the lower premiums for group whole life insurance when compared with a comparable individually issued whole life insurance policy EXCEPT:
the lack of cash value in a group whole life insurance contract
John is the only key employee of an employer whose group term life insurance plan has been deemed discriminatory. What are the consequences of the plan's being considered discriminatory?
the plan will deemed illegal and then terminated