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Question 1

___ are employer-sponsored benefits, other than wages, that enhance the economic security of individuals and families and are partly or fully paid for by employers.

Answer 1

Employee Benefits

Question 2

In what four ways does group insurance tend to differ from individual insurance?

Answer 2

• Many people are covered under one contract; a Master Contract is formed between the group and the insurer.
• Coverage usually costs less than comparable individual insurance
• Individual evidence of insurability is not usually required
• Experience rating is used

Question 3

To be included in group insurance, employees must work full time, satisfy a probationary period, be actively at work when coverage begins, and apply during the ___.

Answer 3

Eligibility Period

Question 4

Group plans also make available ___, whereby employees can purchase additional amounts of insurance without evidence of insurability.

Answer 4

Supplemental Term Insurance

Question 5

Group life insurance plans typically provide ___:

• Provides low-cost protection to employees
• The basic amount of coverage can be based on the workers’ earnings, position, or it can be a flat amount for all
• Coverage usually ends when the employee leaves the company

Answer 5

Yearly Term Insurance Coverage

Question 6

Most group life insurance plans also provide ___ insurance:

• Pays additional benefits if the employee dies in an accident or incurs certain types of bodily injuries
• The benefit is some multiple of the group life insurance benefit
• The full benefit, called the Principal Sum, is paid if the employee dies in an accident

Answer 6

Group Accidental Death and Dismemberment

Question 7

In a(n) ___ group life insurance plan, the employer pays the entire cost.

Answer 7

Noncontributory

Question 8

In a(n) ___ group life insurance plan, the employer and the employee share the cost.

Answer 8

Contributory

Question 9

Some group life insurance plans require employees to satisfy a(n) ___ of 1-3 months before they can participate in the plan.

Answer 9

Probationary period

Question 10

Some group life insurance plans have a(n) ___ option that allows the coverage to continue if the employee leaves.

Answer 10

Portable Term Insurance