Chapter Six: Group Life Insurance

What type of group insurance plan involves employees sharing the cost?

contributory plan

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

Which of the following statements about noncontributory employee group life insurance is FALSE?

A minimum number of employees is required to participate

Which provision is NOT a requirement in a group life policy?

Accidental

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

Contributory

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

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

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 payable under the Master contract