Group life insurance Test Flashcards
An employee under a group insurance policy has the right to name a
beneficiary and the right to
Convert to an individual policy in the event of employment termination
A type of group that has a constitution and bylaws and has been
organized for purposes other than obtaining insurance is called a(n)
Association or labor group
All of the following are characteristics of a Group Life Insurance Plan
EXCEPT
Individual underwriting
Who are the parties to the master contract in a group life insurance
policy?
Insurer & employer
Employer-provided group term life insurance is exempt from income
taxation up to
50k
Who is issued a certificate of insurance with a group insurance policy?
Participant
Which of the following describes a contributory group insurance plan?
Part of the premium is paid by the employee
The conversion privilege under a group life plan allows an employee to
convert to a(n)
Individual plan upon employment termination
Employee participation in a noncontributory group life plan must be
100%
Which of these factors would an insurer consider when determining
whether to accept a group life plan?
Average age
How does underwriting differ between group life and individual life
insurance?
Medical questions must be answered on individual life insurance
The coverage, conditions, and limitations in the master policy of a group
contract can be found in which document?
Certificate of coverage and benefits
Which of the following is NOT a requirement for a terminated employee
that has exercised the conversion privilege?
Provide proof of insurability
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?
Conversion
Under a group life policy, the insurer will issue an individual
policyowner for delivery to each person insured.
Certificate
How is the cost of employer-provided group life insurance with coverage
amounts above $50,000 treated for tax purposes?
Taxable income to the employee
A non-contributory health insurance plan helps the insurer avoid
Adverse selection
Converting a group plan to permanent life insurance requires
The conversion being applied for within 31 days of termination
A terminated employee that has exercised the conversion privilege is able
to convert
Term insurance into permanent insurance
Which of the following is NOT a characteristic of the conversion privilege?
Employer pays a premium for the converted policy
All of the following are considered characteristics of group life insurance,
EXCEPT
Individual policies
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?
Conversion
What does the Group Life underwriting risk selection process help protect
insurance companies from?
Adverse selection
