Unit 8 Group Life Insurance

Question 1

types of eligible groups

Answer 1

single employer sponsored
multiple employer trust (MET)
labor union (sponsored by Taft Hartley trust)
professional or trade association
group credit life
employer sponsored group life

Question 2

multiple employer trust (MET)

Answer 2

trust formed by group of small employers in same or similar industries

Question 3

group credit life

Answer 3

lender automatically the beneficiary
insurance cannot exceed the debt

Question 4

employer sponsored group life

Answer 4

employer is the policy owner
employee receives a certificate of insurance and also names the beneficiary

Question 5

master policy

Answer 5

policy holder or applicant

Question 6

certificate of insurance

Answer 6

evidence of coverage

Question 7

contributory

Answer 7

employee pays part or all of the premium
75% of eligible employees must enroll

Question 8

noncontributory

Answer 8

premium paid by employer
100% of eligible employees must enroll

Question 9

group underwriting

Answer 9

underwriter underwrites the group not individual insureds
usually no medical questions or exams

Question 10

probationary period

Answer 10

waiting period before eligibility for insurance
ranges from 1-12 months

Question 11

enrollment period

Answer 11

follows probationary period
usually 31 days
no medical questions

Question 12

dependent coverage

Answer 12

typically less coverage than the employee

Question 13

conversion

Answer 13

termination of employment
employer stops plan
31-day period to:
-convert to individual permanent policy
-cost based upon attained (current) age
-no medical questions
-death during the 31 day period is covered by the group coverage