Chapter 6 Group Life Insurance Flashcards

1
Q

Basic Principle of group insurance

A

provide coverage for a group of people under 1 contract. (master contract or master policy). employees receive a “certificate of coverage”

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2
Q

Experience Rating

A

relies on groups track record of past claims to determine premiums

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3
Q

Under a group policy the group as a whole must qualify for coverage, not each individual. who is the policy owner?

A

The employer.

they can also determine amount of coverage to be offered and require a certain amount of employee participation before issuing coverage.

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4
Q

Contributory Group Life Insurance

A

plans in which the employee contributes a portion of premium and employer pays the rest.

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5
Q

Non-Contributory Group Life Insurance

A

Employer pays the entire premium, employee pays no portion.

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6
Q

Insurable Groups typically fall into the following categories

A
  • Single employer
  • multiple employer
  • labor unions
  • trade associations
  • creditor/debtor groups
  • Fraternal organizations
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7
Q

2 types of insurance plans for Group Life Programs

A
  1. Term Life (least expensive)

2. Whole Life

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8
Q

Group Term Life Insurance

A

Least expensive group life coverage.

premiums at renewal are based on entire groups loss experience during previous year.

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9
Q

Group Whole Life Insurance ( 3 offering types)

A
  1. Group ordinary plans
  2. Group paid-up plans
  3. group universal life plans
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10
Q

Exceptions to Master Policy Theme

A
  • Franchise Life Insurance
  • Blanket Life Insurance
  • Credit Life Insurance
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11
Q

Franchise Life Insurance

A

Individually owned policies for small groups

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12
Q

Blanket Life Insurance

A

Temporary coverage for a specific hazard for a specific group.

ex. flights, sports teams, etc

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13
Q

Credit Life Insurance

A

relationship between debtor groups and creditor groups

ex. policy will pay creditor

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14
Q

Multiple Employer Trust (MET)

A

Popular method of marketing group benefits to employers who have a small number of employees.

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15
Q

Multiple Employer Welfare Agreement (MEWA)

A

provides insurance for unions and self funded and tax exempt. employees are required by law to have an employment related bond

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16
Q

All Group Life Insurances must be convertible…what are the details

A

31 day conversion period

any death within conversion period is covered.

17
Q

Annually Renewable Term (ART)

A

coverage for 1 year and allows for renewal each year without evidence of insurability

18
Q

Enrollment Period

A

period where new employees can sign up for coverage.

19
Q

Master Policy

A

issued to employer under group plan. contains all clauses and benefits.

20
Q

Group Ordinary

A

provides coverage for a group of people, usually employees under 1 master contract.

21
Q

Probationary Period

A

specified # of days after policy issue date during which coverage is not afforded for sickness.