Group Life Insurance

A noncontributory group term life plan is characterized by:

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

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 term life policy

A non-contributory plan requires ___ participation of all eligible employees

100%

Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?

Certificate of insurance

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

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

Employee

Which of the following is 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

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

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much addition taxable income for each employee?

Nothing

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

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 by for the employer may be a tax deduction

Group life insurance policies are generally written as

annually renewable term

All individuals covered under a group contract will receive a(n)

certificate

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