Chapter 7 group life insurance

The entire cost of the plan is paid for by the employer

A noncontributory group term life plan is characterized by

Certificate

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

- she must convert the coverage to a permanent type of policy - she must apply for conversion within a month of her husband's death - she must pay premiums based on her attained age at the time of conversion

A widow who was insured under her husband's group life plan can continue her life insurance protection under the following conditions

She must prove her insurability through a medical examination

A widow who was insured under her husband's group life plan can continue her life insurance protection under the following conditions EXCEPT

Whole life insurance is the for. Of insurance typically used in group life insurance

All of these are correct concerning group life insurance EXCEPT

Converted to an individual permanent policy at an individual rate

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

$25,000 individual whole life

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

Full benefits must be paid by the insurer.

Ann is an employee covered by a Group Life plan through her employer. When Ann is terminated, her employer fails to inform her about the plan's conversion option. Two weeks later, Ann dies in an automobile accident. How will this situation be handled?

Annual renewable term

Group life insurance policies are generally written as

Contributory

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

Conversion

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

A certificate issued to each individual covered by the group life insurance

What is a certificate of insurance

100% of eligible employees

What percentage of eligible employees must be covered by noncontributory group insurance plans?

75% participate

What percentage of employees must be covered by contributory group insurance plans?

Contributory plan

What type of group plan involves employees sharing the cost?

Policy proceeds will be paid if the employee dies during the conversion period

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

Everyone must be covered in the group

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

Accidental (AD&D)

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

Group was formed for a purpose other than acquiring insurance

Which requirement must be met for an association to be eligible for a group life plan?

Employee

appropriate resp 6 Under a trustee group life policy , who would be eligible for a certificate of coverage ?