Group Life-7

Question 1

Contributory

Answer 1

An employee group plan in which employees share the cost

Question 2

Noncontributory

Answer 2

An employee group plan in which employees do not share in the cost

Question 3

Employees are called

Answer 3

Certificate holders

Question 4

Employers are called

Answer 4

Contract holders

Question 5

Preferred

Answer 5

Low risk

Lower premiums

Question 6

Standard

Answer 6

Average risk

No extra ratings or restrictions

Question 7

Substandard

Answer 7

High risk
Rated up
Higher premiums

Question 8

Declined

Answer 8

Not insurable

Potential of loss to insurance company is too high

Question 9

Group term life

Answer 9

Normally offered as a guaranteed annual renewable term policy

Question 10

Group whole life

Answer 10

Offers permanent protection for insured members under this group

Question 11

Dependent coverage

Answer 11

Most group life insurance policies cover the members dependents

Question 12

Determining eligibility

Answer 12

Must benefit atleast 70% of all employees

Question 13

Conversion to individual policy

Answer 13

If a members coverage is terminated the member and his dependents may convert their group coverage to individual whole life coverage

Question 14

Conversion period

Answer 14

An individual must apply for individual coverage within 31 days after the date of group coverage termination

Question 15

Group policy termination

Answer 15

If the master policy is terminated each individual member who has been insured for at least 5 years is permitted to convert to an individual policy

Question 16

Franchise life insurance

Answer 16

Used where participants are employees of a common employer

Question 17

Group credit life

Answer 17

Are setup banks, finance companies, etc.

Question 18

Blanket life insurance

Answer 18

Covers groups of people exposed to the same hazard

Question 19

Group permanent life

Answer 19

Some form of permanent or whole life insurance as the underlying policy