chapter 6 group life insurance quiz

Question 1

a noncontributory group term life plan is chaacterized by

Answer 1

the entire cost of the plan is paid for by the employer

Question 2

if its employees share in the cost of insurance what type of group life insurance plan would a corporation have?

Answer 2

contributory

Question 3

if a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee

Answer 3

nothing

employers cannot report additional taxable income to employes covered under a group life policy paid for by the employer

Question 4

all individuals covered under a group contract will receive

Answer 4

certificate

Question 5

an employee with $25,000 group term coverage was recently fired. this employees group coverage may be converted to a

Answer 5

25,000 individual whole life policy

Question 6

company xyz offers a group term life insurance plan to its employees. what does each employee covered under this plan receive?

Answer 6

certificate of insurance

Question 7

a non-contributory plan requires ________ participation of all eligible employees

Answer 7

100%

Question 8

what type of group insurance plan involves employees sharing the cost?

Answer 8

contributory plan

Question 9

when an employee is terminated, which statement about a group term life conversion is true?

Answer 9

policy proceeds will be paid if the employee dies during the conversion period

Question 10

what group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability

Answer 10

conversion

Question 11

which provision is NOT a requirement in a group life policy

Answer 11

accidental

Question 12

an employee of 20 years recently retired at age 59 1/2. this employees group life contract can be

Answer 12

converted to an individual permanent policy at an individual rate