Group Life Insurance

Question 1

If a group policy is contributory, what percentage of employees must participate?

• 50%
• 100%
• 90%
• 75%

Answer 1

• 75%

Question 2

For group insurance policies, the covered individual receives proof of coverage in the form of

• an insurance contract
• the insurance policy
• certificate of policy
• certificate of insurance

Answer 2

• certificate of insurance

Question 3

Group insurance generally does NOT require

• stringent medical underwriting
• a master policy owner to hold the policy
• a short application form
• a minimum level of participation amount eligible insureds

Answer 3

• stringent medical underwriting

Question 4

Kathleen is hired to work at a restaurant. She is not eligible to join the group insurance plan for 30 days. This is an example of

• an eligibility period
• a weeding-out period
• an introductory period
• a probationary period

Answer 4

• a probationary period

Question 5

All of the following statements regarding the conversion privilege are true EXCEPT

• The conversion must be done within 31 days from the date the coverage is lost
• proof of insurability is required
• The converted policy must be permanent insurance, not term
• the converted policy must provide the same coverage amount as the individual had under the group policy

Answer 5

• proof of insurability is required

Question 6

Which of the following characteristics about group credit life insurance is nOT correct?

• the lender is the beneficiary
• It is more expensive than individual credit life insurance
• If debt is paid, the policy is canceled
• Coverage can be included as part of the loan transaction

Answer 6

• It is more expensive than individual credit life insurance

Question 7

In a group insurance plans, if the plan is noncontributory, the employer

• pays none of the premium
• is allowed to select the employee who may participate in the plan
• pays the entire premium
• must limit plan enrollment to 5 or fewer employees

Answer 7

• pays the entire premium

Question 8

What minimum percentage of eligible employees must be insured under a noncontributory group policy?

• 100%
• 75%
• 50%
• 25%

Answer 8

• 100%

Question 9

Group life insurance plans in which employee contribute to the overall premium are called

• noncontributory
• group underwritten
• contributory
• participatory

Answer 9

• contributory

Question 10

If a company has 1,000 employees who are eligible for a contributory group health insurance program, how many would be required to participate?

• 500
• 750
• 1,000
• 1,500

Answer 10

750

Question 11

A car manufacturer offers insurance to all of its employees. This type of group is called

• an association group
• a multiple employer trust
• a Taft-hartley trust
• an employer group

Answer 11

• an employer group