Group Life Insurance

Employee participation in a noncontributory group life plan must be :

100%all eligible employees must participate in a noncontributory group life insurance plan

Employer provided group term life insurance is exempt from income taxation up to :

50,000 the IRS requires the cost of employer provided group life insurance above 50,000 to be taxable as income to the employee.

Which of the following is NOT a characteristic of the conversion privilege?

Employer pays the premium for the converted policy

All of the following are considered characteristics of group life insurance, EXCEPT:

Individual Policies

Who are the parties to the master contract in group life insurance policy?

Insurer and employer

Which of the following describes a contributory group insurance plan?

Part of the premium is paid by the employee

Which of the following is NOT requirement for a terminated employee that has exercised the conversion privilege?

Provide proof of insurability

How is the cost of employer - provided group life insurance with coverage amounts above $50,000 treated for tax purposes?

Taxable income to the employee

Tim was recently terminated from his employment and opted to change his existing group term life insurance to individual permanent life insurance. What is this process called?

conversion

A terminated employee that has exercised the conversion privilege is able to convert

term insurance into permanent insurance