Chapter 6 - Group Life Insurance

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

Converted to an individual permanent policy at an individual rate

Group life insurance policies are generally written as:

Annually renewable term

A noncontributory group term life plan is characterized by:

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

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

A person who is insured within a group contract will be given a:

Certificate

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

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

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