Chapter 7 Family First Life Insurance: Group Life

adverse selection ( Because all eligible employees are usually covered, noncontributory plans are desirable from an underwriting standpoint because adverse selection is minimized.)

A non-contributory health insurance plan helps the insurer avoid

association or labor group (have constitutions and bylaws. They are organized and maintained in good faith for purposes other than obtaining insurance)

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)

Individual underwriting (Group life insurance plans are characterized by group underwriting NOT individual)

All of the following (group underwriting, master contract, individual underwriting, and probationary period) are characteristics of a group life insurance plan EXCEPT

convert to an individual policy in the event of employment termination ( A person whose life is insured under a group insurance policy has the right to designate a beneficiary and the right to have an individual policy issued in the case of termination of employment.)

An employee under a group insurance policy has the right to name a beneficiary and the right to

the conversion being applied within 1 month of termination (conversion privilege under a group life plan allows an employee to convert to an individual plan)

Converting a group plan to permanent life insurance involves

individual plan upon employment termination

The conversion privilege under a group life plan allows an employee to convert to a(n)

Certificate of coverage and benefits

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

Certificate of coverage and benefits (The certificate of coverage and benefits describes the coverage, conditions, and limitations found in the master policy of a group contract.)

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

Conversion (Conversion is when an insured individual changes his or her group insurance to an individual policy with the same insurer at the termination of employment.)

Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?

certificate (the insurer will issue an individual certificate to the policy owner for delivery to each person insured under a group life policy)

Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.

Adverse selection (Adverse selection is the tendency of less favorable insurance risks to seek or continue insurance to a greater extent than others.)

What does the Group Life underwriting risk selection process help protect insurance companies from?

Average age (An insurer would consider the average age when determining whether to accept a group life plan)

Which of these factors (number of dependents, incontestable period, average age, or grace period) would an insurer consider when determining whether to accept a group life plan?