Group life insurance Test

Question 1

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

Answer 1

Convert to an individual policy in the event of employment termination

Question 2

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 2

Association or labor group

Question 3

All of the following are characteristics of a Group Life Insurance Plan
EXCEPT

Answer 3

Individual underwriting

Question 4

Who are the parties to the master contract in a group life insurance
policy?

Answer 4

Insurer & employer

Question 5

Employer-provided group term life insurance is exempt from income
taxation up to

Answer 5

50k

Question 6

Who is issued a certificate of insurance with a group insurance policy?

Answer 6

Participant

Question 7

Which of the following describes a contributory group insurance plan?

Answer 7

Part of the premium is paid by the employee

Question 8

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

Answer 8

Individual plan upon employment termination

Question 9

Employee participation in a noncontributory group life plan must be

Answer 9

100%

Question 10

Which of these factors would an insurer consider when determining
whether to accept a group life plan?

Answer 10

Average age

Question 11

How does underwriting differ between group life and individual life
insurance?

Answer 11

Medical questions must be answered on individual life insurance

Question 12

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

Answer 12

Certificate of coverage and benefits

Question 13

Which of the following is NOT a requirement for a terminated employee
that has exercised the conversion privilege?

Answer 13

Provide proof of insurability

Question 14

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?

Answer 14

Conversion

Question 15

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

Answer 15

Certificate

Question 16

How is the cost of employer-provided group life insurance with coverage
amounts above $50,000 treated for tax purposes?

Answer 16

Taxable income to the employee

Question 17

A non-contributory health insurance plan helps the insurer avoid

Answer 17

Adverse selection

Question 18

Converting a group plan to permanent life insurance requires

Answer 18

The conversion being applied for within 31 days of termination

Question 19

A terminated employee that has exercised the conversion privilege is able
to convert

Answer 19

Term insurance into permanent insurance

Question 20

Which of the following is NOT a characteristic of the conversion privilege?

Answer 20

Employer pays a premium for the converted policy

Question 21

All of the following are considered characteristics of group life insurance,
EXCEPT

Answer 21

Individual policies

Question 22

Tim was recently terminated from his employment and opted to change
his existing group term life insurance to individual permanent life
insurance. What is this process called?

Answer 22

Conversion

Question 23

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

Answer 23

Adverse selection