Section 5 - Group Life Insurance

Question 1

Which statement about group life insurance is incorrect?
-Cost can be shared between employer and employee
-Each participant requires evidence of insurability
-A minimum number of employees participating may be required
-Employer is issued a master policy

Answer 1

Each participant requires evidence of insurability = incorrect

Question 2

Any employee insured under a group life insurance plan is normally

Answer 2

Covered with term life insurance

Question 3

The conversion option for group term insurance may be exercised by an employee…

Answer 3

Within 31 days of terminated employment

Question 4

Which type of policy can group term life insurance normally be converted to?

Answer 4

An individual permanent life insurance policy

Question 5

What is an insurance contract that identifies individuals by relationship to a specific organization?

Answer 5

Group insurance

Question 6

The policy provision that permits, an employee to change from group life coverage to an individual life policy is called the…

Answer 6

Conversion provision

Question 7

An employer has a group life coverage for his employees. How would an employee and poor health be treated in the situation?

Answer 7

Eligible for the same type of coverage as the other employees

Question 8

What are premiums for group credit life insurance based based on?

Answer 8

Flat rate unrelated to the borrowers age

Question 9

Group life insurance is typically issued as

Answer 9

Level term insurance