Group Life Insurance, Retirement Plans, and Social Security Disability Program

Who is a third-party owner?

A policyowner who is not the insured

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

Employer contributions made to a qualified plan

Are subject to vesting requirements

Am 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

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT

Being age 65

Selection coverage in employee benefits plans refers to

Employee choosing benefits

For a retirement plan to be qualified, it must be designed for whose benefit?

Employees

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

For 31 days

If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is...

Fully insured

All of the following are true regarding the issuance of group life insurance to labor unions EXCEPT

Members cannot be excluded from coverage on the basis of insurability

What is the official name for the Social Security program?

Old Age Survivors Disability Insurance

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder

In a group life insurance policy, the employer may select all of the following EXCEPT

The Beneficiary

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies

According to the California law, all of the following may be covered as dependent under group life insurance EXCEPT

The insured's elderly parents living with the insured

Which if the following are generally NOT considered when underwriting group insurance?

The insured's medical history

After an employee was laid off, he was informed of the right to convert the group coverage to an individual policy within 31 days. Twenty days into the conversion period, the employee suffered a heart attack and died before he could obtain individual coverage. What is the group policy insurer required to do?

The insurer must pay the death benefit under the former group coverage

All of the following are general requirements of a qualified plan EXCEPT

The plan must provide an offset for social security benefits

Which if the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

Third party ownership

Social Security was created to provide all of the following benefits EXCEPT

Unemployment income

Vision, Inc. employs 500 people. The company offers group life insurance to its employees after 90 days of service. Who is considered the policyholder of the life insurance policies Vision, Inc. offers?

Vision, Inc.

Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?

Worker's occupation

All of the following benefits are available under Social Security EXCEPT

-Death benefits ***WELFARE BENEFITS*** -Old-age and retirement benefits -Disability benefits

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits?

12 credits

Within how many days of termination of employment must an employer give notice of the employee's right to convert the group policy to an individual policy?

15 days

What is the limiting age for dependent children of the insured employee in a group life plan (other than disabled children)?

26

All of the following could own group life insurance EXCEPT

A group needing low cost life insurance

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

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 with in 31 days of leaving the group plan

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6 credits

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

75%

When employees are covered by group insurance, they receive

A certificate of insurance

What is the number of credits required for fully status for Social Security disability benefits?

40

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

The minimum number of credits required for partially insured status fro Social Security disability benefits is

6

In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called?

Blackout period

Social security benefits are available for a surviving souse until the youngest child reaches age 16. Benefits are again available for the spouse after reaching age 60. What is the time period called which the surviving spouse does not receive benefits?

Blackout period

After being hired to deliver newspaper to his neighbors, a man is provided with $10,000 of life insurance by the newspaper. He would be covered under which kind of life insurance?

Blanket Life

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members

An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits?

Have accumulated 6 work credits in the past 3 years

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

Have attained fully insured status

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary

Which if the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee

If a retirement plan or annuity is "qualified", this means

It is approved by the IRS

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

The purpose of the group was to purchase life insurance