Group Life Insurance, Retirement Plans, and Social Security Disability Program
What is the number of credits required for fully insured status for Social Security disability benefits?
40 credits
What is the required number of participants in a contributory group plan?
75%
When employees are covered by group insurance, they receive what?
A certificate of insurance
Who is a third party owner?
A policy owner who is not insured
Social Security benefits are available for a surviving spouse until the youngest child reaches age 16. Benefits are again available for the spouse after reaching age 60. What is the time period called during which the surviving spouse does not receive benefits?
Blackout period
Selection of coverage in employee benefits plans refers to what?
Employee choosing benefits
For a retirement plan to be qualified, it must be designed for the benefit of who?
Employees
Which of the following is TRUE of a qualified plan?
It has a tax benefit for both employer and employee
What is the official name for the Social Security program?
Old Age Survivors Disability Insurance
What is NOT true concerning Debtor groups?
The amount of insurance on the life of any debtor may exceed the greater of e scheduled or actual amount of unpaid indebtedness to the creditor
What is NOT generally considered when underwriting group insurance?
The insureds medical history
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
Third party ownership
What is NOT a factor in determining qualifications for Social Security benefits?
Workers Occupation
Group life insurance is a single policy written to provide coverage to members of a group. What statement describes group life accurately?
100% participation of members is required in noncontributory plans
If a person is disabled at age 27 and meets Social Security's definition of total disability, how many works credits must he/she have earned to receive benefits?
12 credits
Within how many days of termination of employment must an employer give notice of the employees right to convert the group policy to an individual policy?
15 days
In order to qualify for conversion from a group life policy to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5 years
What is the minimum number of credits required for partially insured status for Social Security benefits?
6
Who cannot own group life insurance?
A group needing low cost life insurance
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on what?
His Attained age
Which of the following is incorrect concerning a noncontributory group plan?
The employees receive individual policies
Which benefit is NOT available under Social Security?
Welfare Benefits
Sarah becomes disabled at 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirements must Sarah have met to receive Social Security disabilty benefits?
She must have accumulated 6 work credits in the past 3 years
What percentage of a company's employees must take part in a noncontributory group life plan?
100%
In a group life insurance policy, the employer cannot select what?
The beneficiary
What is not a general requirement of a qualified plan?
The plan must provide an offset for social security benefits
What is NOT an example of third party ownership?
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
Finish this sentence- Employer contributions made to a qualified plan...
Are subject to vesting requirements
An association could buy group insurance for its members if it meets what 4 requirements?
Holds annual meetings; Is contributory; Has a constitution and by-laws; Must have 100 members
An employee is insured under her employers group life plan. If she terminates her group coverage, which of the following statements would be INCORRECT?
The insured may choose to convert to term or permanent individual coverage
