13.1a

Question 1

A Group Life Insurance contract provides life insurance protection for members of a particular group, such as an employer group, multiple employer trust (MET), an association or labor group that meets the requirements set forth under state law for group life insurance. While many differences exist between group and individual life insurance contracts, the overall purpose of the two is the same: to ______.

Answer 1

prevent financial loss resulting from premature death

Question 2

Employer groups, unions and labor groups, associations, and fraternal benefit societies, among other plan sponsors, establish group life plans with the intention of providing members with life insurance as a ______.

Answer 2

benefit of employment or membership in the group

Question 3

Acting as a fiduciary, these ______ are responsible for administering the group’s life insurance plan, and in most states, participating in the plan’s premium payments. Plan sponsors are also responsible for defining the ‘class’ structure within the group, as well as maintaining the group’s enrollment persistency with the insurer.

Answer 3

plan sponsors

Question 4

In an employment-based group, class structure is based on tenure or ______. For instance, benefit levels may vary between hourly and salaried employees, management and company executives; benefit levels are based on this structure to avoid employee discrimination within the same class, or level of employment.

Answer 4

the job description of the company’s employees

Question 5

In an employer-based group life policy, each employee has the right to choose anyone he or she wishes as the ______. While most employees choose a family member, such as a spouse or child as the policy’s beneficiary, it is not uncommon to designate the employee’s estate, a will or a family trust, or for a charity or similar institution to be named as the employee’s beneficiary.

Answer 5

beneficiary of his or her life insurance policy