Chapter Six: Group Life Insurance
What type of group insurance plan involves employees sharing the cost?
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
Which of the following statements about noncontributory employee group life insurance is FALSE?
A minimum number of employees is required to participate
Which provision is NOT a requirement in a group life policy?
Accidental
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Contributory
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 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
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
Which of the following is an important underwriting principle of group life insurance?
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