Group life insurance – Lesson 7 Flashcards
What is the time period called when an employee may sign up for insurance coverage?
Eligibility period.
What is a disadvantage of group insurance?
No individual selection
The amount of insurance provided by employer for employees may be based on:
- Position
- Earnings
- Flat benefit
A group policy in which the employer pays the entire premium is called:
Noncontributory
What percentage of employees must participate in a contributory group policy?
75%
In group life insurance, the individual members do not have to prove insurability. True or false?
True
Why should an employee consider signing up for a group life policy during the eligibility period?
there will be no requirement to provide proof of insurability.
Group life insurance commonly is:
Annual renewable term insurance
How many days does an employee have to convert from a group life insurance policy to an individual policy once he has been laid off from the company?
31 days to convert
What does an employee receive as evidence of coverage under a group life insurance policy?
Certificate of insurance
Credit life insurance pays the death benefit to whom?
The lender
Blanket insurance would be used to ensure who?
- Students at a university
- Scouts at girl/boy scout campgrounds
- Volunteer groups
A multiple employer trust (MET) is:
An entity of small business owners formed to purchase group insurance to cover employees.
Premiums in group insurance are based on what?
Loss experience
What is the advantage of group insurance?
No requirement of proof of insurability.
