Chapter Nine Quiz Flashcards
If a retirement plan or annuity is “qualified”, this means:
It is approved by the IRS
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may:
Require evidence of insurability
Who is a third party owner?
A policyowner who is not the insured
In a group life insurance policy, the employer may select all of the following except:
The beneficiary
In group life policies, a certificate of insurance is given to:
Each insured person
For a retirement plan to be qualified, it must be designed for the benefit of:
Employees
All of the following could own group life insurance except:
A group needing low cost life insurance
An employee is insured under her employers group life plan. If she terminates her group coverage, which of the following statements is correct?
- The insured would not need to prove insurability for a conversion policy
- The premium for individual coverage will be based upon the insureds attained age
- The insured may convert coverage to an individual policy within 31 days
In order to qualify for conversion from a group life policy that has been terminated to an individualized policy of the same coverage, a person must have been insured under the group plan for how many years?
5 years
After an employee was laid off, he was informed of the right to convert the group coverage to an individual policy within 31 days. Twenty days into the conversion period, the employee suffered a heart attack and died before he could obtain individual coverage. What is the group policy insurer required to do?
The insurer must pay the death benefit under the former group coverage
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
When employees are covered by group insurance, they receive:
A certificate of insurance
