Podcast
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)
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
- Multiple coalition
- Association or labor group (correct)
- Employee group
- Employer group
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
- Coverage document
- Certificate of coverage benefits (correct)
- Certificate of Authority
- Consumer report
What does the Group Life underwriting risk selection process help protect insurance companies from?
What does the Group Life underwriting risk selection process help protect insurance companies from?
- Adverse selection (correct)
- Risk aversion
- Risk management
- Natural selection
An employee under a group insurance policy has the right to name a beneficiary and the right to
An employee under a group insurance policy has the right to name a beneficiary and the right to
A non-contributory health insurance plan helps the insurer avoid
A non-contributory health insurance plan helps the insurer avoid
Which of these factors would an insurer consider when determining whether to accept a group life plan?
Which of these factors would an insurer consider when determining whether to accept a group life plan?
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?
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?
All of the following are characteristics of Group Life Insurance Plan EXCEPT
All of the following are characteristics of Group Life Insurance Plan EXCEPT
Converting a group plan to permanent life insurance requires
Converting a group plan to permanent life insurance requires
The conversion privilege under a group life plan allows an employee to convert to a(n)
The conversion privilege under a group life plan allows an employee to convert to a(n)
Under a group life policy, the insurer will issue an individual ___ to the policyowner for delivery to each person insured.
Under a group life policy, the insurer will issue an individual ___ to the policyowner for delivery to each person insured.
Flashcards
Association or labor group
Association or labor group
A group with a constitution and bylaws, organized for purposes other than obtaining insurance.
Certificate of coverage benefits
Certificate of coverage benefits
A document outlining the coverage, conditions, and limitations of a group contract.
Group Life underwriting risk selection
Group Life underwriting risk selection
Protects against a higher-than-expected risk pool, ensuring a balanced group.
Employee rights under group insurance
Employee rights under group insurance
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Non-contributory health insurance plan
Non-contributory health insurance plan
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Factor considered for accepting a group life plan
Factor considered for accepting a group life plan
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Conversion
Conversion
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Individual underwriting
Individual underwriting
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Converting to permanent life insurance
Converting to permanent life insurance
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Conversion privilege
Conversion privilege
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Certificate under a group life policy
Certificate under a group life policy
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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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