Module 6 - Group Life

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

What type of group insurance plan involves employees sharing the cost? -Contributory plan -Non-contributory plan -Qualified plan -Non-qualified plan

Contributory plan

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

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

Employee

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

Accidental: an AD&D provision is not required in a group policy

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

Contributory

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

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: noncontributory employee group life insurance plans must cover ALL eligible employees at all times

Group life insurance policies are generally written as: -A term rider -Annually renewable term -Increasing term -Group whole life

Annually Renewable term

A person who is insured within a group contract will be given a: -Certificate -Master policy -Participation agreement -Individual policy

Certificate

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: an individual is covered under the group policy during the conversion period

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: an individual must apply for individual permanent coverage within 31 days after the date of group coverage termination. An individual is covered under the group policy during the conversion period

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

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

The group must be formed for the purpose of getting affordable insurance: all or a large percentage of persons in the group must be covered by the insurance