Chapter 7: Group Life insurance Flashcards
Under a trustee group life policy, who would be eligible for a certificate of coverage?
employee
S, while in the process of converting her group life insurance to an individual policy dies. What happens to the claim her beneficiary submits
full benefits are payable under the master contract
An employee with $25,000 group term life coverage was recently fired. This employee’s group coverage may be converted to a
$25,000 individual whole life policy
Which provision is NOT a requirement in a group life policy?
Conversion
Grace Period
Incontestable Period
**Accidental
When an employee is terminated, which statement about group term life conversion is true?
policy proceeds will be paid if the employee dies during the conversion period
If a corporation pays the premium on a group life policy for it’s employees, the corporation is required to report how much addition taxable income for each employee?
nothing
Which requirement must be met for an association to be eligible for a group life plan?
group was formed for a purpose other than acquiring insurance
Which of the following is an important underwriting principle of group life insurance?
everyone must be covered in the group
Which of the following statements about noncontributory employee group life insurance is FALSE
a minimum number of employees is required to participate
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
contributory
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
conversion
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group term life plan to all its eligible employees?
portion of the premiums paid for by the employer may be a tax deduction
