Chapter 5 Exam- 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

Which provision is NOT a requirement in a group life policy?

Accidental *An AD&D provision is not required in a group life policy.

Under a trustee group life policy, who would be eligible for a certificate of coverage?

Employee

When an employee is terminated, which statement about a group term life conversion is true?

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.

Under federal tax 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

A person who is insured within a group contract will be given a:

certificate

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

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

Conversion

Which of the following is an important underwriting principle of group life insurance?

Everyone must covered in the group *An important underwriting principle of group life is that all or a large percentage of persons in the group must be covered by the insurance.

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