Group Life

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

$25, 000 individual whole life policy

A non-contributory plan requires ______ participation of all eligible employees.

100%

Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?

Certificate of Insurance

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

Contributory

Which of the following is an important underwriting principal?

Everyone must be covered in the group

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

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

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much taxable income for each employee?

Nothing

Under federal 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

Group life insurance policies are generally written as

annually renewable term