XCEL Chapter 7

All of the following conditions are included in group credit life programs EXCEPT

Benefits are paid to the borrower's beneficiary

Which of the following is NOT a characteristic of the conversion privilege?

Employer pays the premium for the converted policy

In a single employer group plan, what is the name of the policy issued to the employer?

Master contract

All of the following are considered characteristics of group life insurance EXCEPT

individual policies

How does underwriting differ between group life and individual life insurance?

Medical questions must be answered on individual life insurance

Which of the following describes a contributory group insurance plan?

Part of the premium is paid by the employee

Who is issued a certificate of insurance with a group insurance policy?

Participant

Which of the following is NOT a requirement for a terminated employee that has exercised the conversion privilege?

Provide proof of insurability

How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes?

Taxable income to the employee

A terminated employee that has exercised the conversion privilege is able to convert

term group life coverage into permanent insurance

Tim was recently terminated from his employment and opted to change his existing group term life insurance to individual permanent life insurance. What is this process called?

Conversion