Chapter 6 Exam Group life
Under a trustee group life policy, who would be eligible for a certificate of coverage?
employee
Which of the following is an 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 playable under the Master contract
Which provision is NOT a requirement in a group life policy?
Accidental
Group life insurance policies are generally written as
annually renewable term
A non-contributory plan requires ____ participation of all eligible employees
100%
If a corporation pays the premium on a group life policy for its the employees, the corporation is required to report how much additional taxable income for each employee?
nothing
Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under 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 type of group insurance plan involves employees sharing the cost?
Contributory plan
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
Conversion
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
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 for by the employer may be a tax deduction
All individual covered under a group contract will receive
certificate