Group Insurance Market Flashcards
To be eligible for a group insurance plan, the group must be:
A
Formed for reducing the cost of insurance
B
Approved by the Commissioner of Insurance
C
Formed for procuring insurance
D
A natural group
D
A natural group
An employee who becomes entitled under the terms of the group policy to have an individual policy issued without evidence of insurability must: A Document the need for coverage B File for unemployment C Request the coverage within 90 days D Submit an application along with the initial premium
D
Submit an application along with the initial premium
Social Security pays an eligible surviving spouse (or minor child) a one-time benefit upon the death of a covered worker. Which of the following is the amount of that benefit? A $255 B $250 C $355 D $350
A
$255
To help protect against experiencing immediate claims, group plans have a(n) \_\_\_\_\_\_\_ period set up by the group sponsor. A Probationary B Elimination C Conversion D Open enrollment
A
Probationary
California law permits group insurers to offer coverage for up to 100% of the employee's basic coverage amount for a spouse and all children from birth until age: A 21 B 25 C 19 D 26
D
26
The premium for optional dependent group insurance can be payable by: A The employee only B Both the employee and employer must contribute C The employer only D The employer, the employee, or both
D
The employer, the employee, or both
The arrangement under a Buy-Sell Agreement in which each party purchases insurance on the life of his/her partner(s) is called a: A Entity Purchase Plan B Deferred Compensation C Cross Purchase Plan D Split-Dollar Plan
C
Cross Purchase Plan
Under an Entity Purchase Plan form of a Buy-Sell Agreement, the business is all of the following, except: A Insured B Policyholder C Beneficiary D Premium payor
A
Insured
As specified by the California Insurance Code, the validity of a group policy cannot be contested, except for nonpayment of premiums, after it has been in force for: A 18 months B 9 months C 1 year D 2 years
D
2 years
The Social Security Death Benefit is payable to the \_\_\_\_\_\_\_\_\_\_\_\_. A The named beneficiary B The estate of the insured C The surviving spouse D The next of kin
C
The surviving spouse
Every group policy containing a life insurance benefit must contain a reasonable extension of benefits upon discontinuance of the policy for employees who, while insured under the policy, become: A Partially disabled B Laid-off C Totally disabled D Retired
C
Totally disabled
In order for a worker to be qualified for all of the benefits available from social security how many credits must be earned? A 30 credits B 6 credits in the last 13 quarters C 1 credit for each year of work between age 20 and age 40 D 40 credits
D
40 credits
A primary purpose of key person life insurance is to do which of these?
A
Provide the family of the deceased employee with up to ten years of the employee’s lost future
B
Provide the business with money to recruit and train a replacement employee
C
Provide the business with money to pay vested retirement benefits to the heirs of the employee as a lump sum
D
Protect the business against the death of any employee earning at least $50,000 per year
B
Provide the business with money to recruit and train a replacement employee
When a group insurance plan is identified as contributory, it means all of the following, EXCEPT___________.
A
Employees pay a portion of the cost of their benefit
B
Employers must enroll 100% of eligible employees
C
Employee must be eligible to participate
D
Employers are responsible for collecting the premiums employees pay
B
Employers must enroll 100% of eligible employees
