Group Life

Question 1

The conversion privilege under a group life plan allows an employee to convert to a(n)

Answer 1

Individual plan upon employment termination

Question 2

Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?
A) coordination of benefits
B) conversion
C) extension of benefits
D) rollover

Answer 2

B) conversion

Question 3

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)

Answer 3

Association or labor group

Question 4

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

Answer 4

Certificate of coverage and benefits

Question 5

Which of these factors would an insurer consider when determining whether to accept a group life plan?
A) number of dependents
B) incontestable period
C) average age
D) grace period

Answer 5

Average age

Question 6

Converting a group plan to permanent life insurance requires

Answer 6

The conversion being applied for within 31 days of termination

Question 7

Under a group life policy, the insurer will issue an individual _____ to the policy owner for delivery to each person insured

Answer 7

Certificate

Question 8

All of the following are characteristics of a Group Life Insurance Plan EXCEPT
A) group underwriting
B) master contract
C) individual underwriting
D) probationary period

Answer 8

C) individual underwriting

Question 9

An employee under a group insurance policy has the right to name a beneficiary and the right to

Answer 9

Convert to an individual policy in the event of employment termination

Question 10

What does the Group Life underwriting risk selection process help protect insurance companies from?

Answer 10

Adverse selection