Group Life

Jacob has been insured under his employer-sponsored group life insurance plan for seven years. He becomes totally disabled upon termination of his group coverage. Which of the following is true?

Group members who become totally disabled will be allowed to continue their group coverage for a maximum of six months after the onset of the total disability. The premium will not change. The correct answer is: Jacob must be permitted to continue group coverage for six months.

Tim's Toy Shop has gone bankrupt and needs to terminate all employees. Tim informs all employees of their right of conversion under the employer-sponsored group life plan. How many days are Tim's employees allotted to convert their group life coverage to individual coverage?

The conversion period is 31 days after termination from group coverage. This means the individual must apply for individual coverage within 31 days after the date of group coverage termination. The extension does not apply because Tim notified his employees of the conversion right. The correct answer is: 31 days

What type of group plan requires 75% participation?

With a contributory plan, the group members share the cost of the coverage with the employer, and must have at least 75% participation. The correct answer is: Contributory

Contributory plans:

With a contributory plan, the group members share the cost of the coverage with the employer, and must have at least 75% participation. The correct answer is: Must have 75% participation

Noncontributory plans:

With a noncontributory plan, the employer pays the entire cost of premiums, and must have 100% participation. The correct answer is: Must have 100% participation

What type of group plan requires 100% participation?

With a noncontributory plan, the employer pays the entire cost of premiums, and must have 100% participation. The correct answer is: Noncontributory

Serena dies 15 days after her group life insurance coverage is terminated. She did not apply for individual coverage. Which of the following is true?

The insured is covered under the group policy during the conversion period. The full death benefit will be paid to Serena's beneficiary. The correct answer is: Serena's beneficiary will receive the full death benefit.

Conversion from a group policy to an individual policy must be made within a maximum of how many days of termination from the group coverage?

The conversion period is limited to a maximum of 60 days from the date of group coverage termination. The correct answer is: 60

Which of the following statements is false regarding the conversion option for group life insurance policies?

The converted coverage must be whole life. The correct answer is: Converted coverage may be term or whole life, depending on the needs of the insured.