Questions and Answers
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
What does the Group Life underwriting risk selection process help protect insurance companies from?
An employee under a group insurance policy has the right to name a beneficiary and the right to
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A non-contributory health insurance plan helps the insurer avoid
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Which of these factors would an insurer consider when determining whether to accept a group life plan?
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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 charge that will take place?
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All of the following are characteristics of Group Life Insurance Plan EXCEPT
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Converting a group plan to permanent life insurance requires
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The conversion privilege under a group life plan allows an employee to convert to a(n)
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Under a group life policy, the insurer will issue an individual ___ to the policyowner for delivery to each person insured.
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Study Notes
Group Life Insurance Overview
- Association or labor groups are organized for purposes other than obtaining insurance, and have a constitution and bylaws.
- The certificate of coverage benefits outlines the coverage, conditions, and limitations in a group insurance master policy.
Underwriting and Risk Management
- The Group Life underwriting risk selection process is designed to guard against adverse selection, where higher risks are more likely to seek coverage.
- A non-contributory health insurance plan helps insurers avoid adverse selection, as it does not require employee contributions.
Employee Rights and Conversion
- Employees under a group insurance policy can name a beneficiary and have the right to convert to an individual policy if employment is terminated.
- Conversion of group coverage to an individual policy is necessary upon employment termination to maintain coverage.
Insurer Considerations
- Insurers evaluate factors like the average age of group members when determining whether to accept a group life plan.
- Characteristics of Group Life Insurance include group underwriting, a master contract, and a probationary period, but not individual underwriting.
Conversion and Coverage Details
- Converting a group plan to permanent life insurance requires that the conversion is applied for within 31 days after termination.
- The conversion privilege allows employees to transition to an individual plan upon termination of employment.
Documentation and Policy Types
- Under a group life policy, insurers issue a certificate to the policyowner for delivery to each insured individual, serving as proof of coverage.
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Description
Test your knowledge on Group Life concepts covered in Chapter 7. This quiz includes flashcards that address key terminologies and documents related to association and labor groups. Prepare to enhance your understanding of group life insurance!
