chapter 8

Question 1

employee benefit plan under which the employer bears the full cost of the employees’ benefits; in most states, the plan must insure 100% of eligible employees.

Answer 1

noncontributory

Question 2

group insurance plan issued to an employer under which both the employer and employees contribute to the cost of the plan. Generally, 75% of the eligible employees must be insured in most states.

Answer 2

contributory

Question 3

issued to the employer under a group plan; contains all the insuring clauses defining employee benefits.

Answer 3

master policy

Question 4

life or health insurance plan for covering groups of persons with individual policies uniform in provisions, although perhaps different in benefits.

Answer 4

franchise insurance

Question 5

designed to help the insured pay off a loan in the event they are disabled due to an accident or sickness or in the event they die

Answer 5

credit policies

Question 6

issued to cover a group who may be exposed to the same risks, but the composition of the group (the individuals within the group) are constantly changing

Answer 6

blanket health policies

Question 7

Employees are called

Answer 7

certificate holders

Question 8

Employers are called

Answer 8

contract holders