Group Life Insurance Ch. 6

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a

$25,000 individual whole life policy

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

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

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

Group life insurance policies are generally written as

annually renewable term

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

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

A noncontributory group term life plan is characterized by

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

If its employees share in the cost of the 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