Chapter 6

Question 1

Insurance policies that are individually underwritten are called…?

Answer 1

individual insurance policies

Question 2

Insurance policy that provides insurance for a group of people (usually employees) under a single contract is called..?

Answer 2

group insurance

Question 3

The type of plans that do not require individual underwriting are called..?

Answer 3

group insurance

Question 4

Which insurance policies are individually underwritten?

Answer 4

individual policies

Question 5

Individual insurance is also known as _______.

Answer 5

ordinary life policies

Question 6

Under a group policy, each employee receives a certificate of insurance rather than an individual policy. This is called..?

Answer 6

certificate of insurance

Question 7

In group insurance, conversion refers to when an employee converts from group insurance to an individual policy, usually to individual whole life. This is called..?

Answer 7

conversion

Question 8

Premiums paid by employers for group insurance are/are not tax-deductible.

Answer 8

are

Question 9

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

Answer 9

contributory plan

Question 10

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

Answer 10

non-contributory plan

Question 11

Which is more expensive to administer, group insurance or individual insurance?

Answer 11

individual insurance