Chapter 13

Question 1

A contract that provides life insurance for members of a particular group (usually employees) is called..?

Answer 1

group life insurance

Question 2

There is only one policy issued for many people, which is referred to as ____ and belongs to the employer.

Answer 2

the master contract

Question 3

Under a group policy, each employee receives a _____ rather than an individual policy.

Answer 3

certificate of insurance

Question 4

Group life is more or less expensive to administer because these plans do not require individual underwriting (the employees are underwritten as one big group)

Answer 4

less expensive

Question 5

When the employer and employee share the cost of insurance premiums, this is called..?

Answer 5

contributory plan

Question 6

When the employer pays the entire cost of insurance premiums, this is called..?

Answer 6

non-contributory plan

Question 7

In group insurance, _____ refers to when an employee converts from group insurance to an individual policy, usually to individual whole life.

Answer 7

conversion

Question 8

Premiums paid by employers for group insurance are or are not tax-deductible?

Answer 8

are