Group Life Insurance Ch.6 Exam

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

In this situation, the insured can convert to a permanent policy at the individuals rates. They can convert to an individual permanent policy.

Which of the following statements about noncontributory employee group life insurance is false?

Noncontributory employee group life insurance plans must cover all eligible employees at all time; there is no minimum number of employees required to participate.

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

A person insured within a group contract receives a certificate of insurance.

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

An employee would be a certificate holder under a trustee group life policy.

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

Conversion privilege allows an individual to leave the group term plan and continue their insurance without providing insurability.

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

Employees share in the premium costs with contributory plans.

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

Everyone must be covered in the group; all or a large percentage of persons must be covered.

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

Policy proceeds will be paid if the employee dies during the conversion period; the individual must apply for permanent coverage within 31 days after the group coverage termination.

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 if the premiums paid for by the employer may be tax deductible, in a contributory plan, the employer may file tax deductible for its share of the premium costs.

A noncontributory group term life plan is characterized by:

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