Sectiom 7 - Group Life

Question 1

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?
A. Coordination of benefits
B. Conversion
C. Extension of benefits
D. Rollover

Answer 1

Conversion

Question 2

Converting a group plan to permanent life insurance requires
A Submitting proof of insurability
B. Paying a lower premium
C. Converting to term life insurance
D. The conversion being applied for within 31 days of termination

Answer 2

The conversion being applied for within 31 days of termination

Question 3

Which of these factors would an insurer consider when determining whether to accept a group life plan?
A. Number of dependents
B. Incontestable period
C. Average age
D. Grace period.

Answer 3

Average age

Question 4

An employee under a group insurance policy has the right to name a beneficiary and the right to
A. Remain on the group plan in the event of employment termination
B. Cash surrender the existing policy
C. Change the policy provisions
D. Convert to an individual policy in the event of employment termination

Answer 4

Convert to an individual policy in the event of employment termination

Question 5

A non-contributory health insurance plan helps the insurer avoid
A. Adverse selection
B. State compliance
C. The underwriting process
D. Tax deductions

Answer 5

Adverse selection

Question 6

A type of group that has a constitution and bylaws and has been organized for purposes, other than obtaining insurance is called a(n)
A. Employer group
B. Employee group
C. Association of labor group
D. Multiple coalition

Answer 6

Association or labor group

Question 7

What does the group life underwriting risk selection process help protect insurance companies from?
A. Risk aversion
B. Natural selection
C. Adverse selection
D. Risk management

Answer 7

Adverse selection

Question 8

The coverage conditions and limitations in the master policy of a group contract can be found in which document?
A. Certificate of authority
B. Consumer report
C. Coverage document
D. Certificate of coverage and benefits.

Answer 8

Certificate of coverage and benefits

Question 9

Under a group life policy, the insurer will issue an individual _____ to the policy owner for delivery to each person insured.
A. Policy
B. Certificate
C Application
D. Rider

Answer 9

Certificate

Question 10

The conversion privilege under a group life plan allows an employee to convert to a(n)
A. Family plan with another insurer
B. Individual plan with another insured that has better rates
C. Individual plan upon employment termination
D. Individual policy in the spouses name

Answer 10

Individual plan upon employment termination