Chapter 5: Group Life Insurance

Eligible for the same type of coverage as the other employees

An employer has a group life insurance plan in place for his employees. How would an employee in poor health be treated in this situation?

protected by term life insurance

Any employee insured under a group life insurance plan is normally

tax deductible to the business

If an employer pays for accidental death and dismemberment insurance for its employees, the amount paid by the employer is generally

within 31 days of terminated employment

The conversion option for group term insurance may be exercised by an employee

conversion provision

The policy provision that permits an employee to change from a group plan to an individual plan is called the

Flat rate unrelated to the borrower's age

What are premiums for group credit life insurance based on?

Adverse selection is minimized

What is the reason that insurance companies require a minimum number of employees participating in a group insurance plan?

Group insurance

What is the term used for an insurance contract that identifies individuals by relationship to a specific organization?

100%

What minimum percentage of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?

An individual permanent life insurance policy

What type of policy can group term life insurance normally be converted to?

Each participant requires evidence of insurability

Which statement about group life insurance is INCORRECT?

Indicates evidence of an employee's insurance coverage

Which statement regarding the certificate of insurance is accurate?