Group Life Insurance

Question 1

Issued to cover a group who may be exposed to the same risks, but the composition of the group are continually changing

Answer 1

Blanket Health Policies

Question 2

Document issued by an insurance company/broker that is used to verify the existence of insurance coverage under specific conditions granted to listed individuals.

Answer 2

Certificate of Insurance

Question 3

Group insurance plan issued to an employer under which both the employer and employees contribute to the cost of the plan.

75% of eligible employees must be insured

Answer 3

Contributory Plan

Question 4

Allows the policy owner, before an original insurance policy expires, to elect to have a new policy issued that will continue the insurance coverage. The insurer does not have to prove insurability

Answer 4

Conversion Priviledge

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. Provides monthly benefit payments equal to the monthly loan payments due.

Answer 5

Credit Policies

Question 6

Life or health insurance plan for covering groups of persons with individual policies uniform in provisions, although perhaps different in benefits. Can be written for groups too small to qualify for regular group coverage.

Answer 6

Franchise Insurance

Question 7

Issues to the employer under a group policy and contains all the insuring clauses defining employee benefits. Individuals will then receive Certificate of Insurance.

Answer 7

Master Policy

Question 8

Employee benefit plan under which the employer bears the full cost of the employees benefits.

Must cover 100% of eligible employees.

Answer 8

Noncontributory Plan

Question 9

Percentage of policies an insurer has in force after a specified period of time. Companies with higher … are more stable and profitable than those with lower …

Companies aim for 80% after 3 years, and 60% after 5 years

Answer 9

Persistency