Podcast
Questions and Answers
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Employee
Which provision is NOT a requirement in a group life policy?
Which provision is NOT a requirement in a group life policy?
A person who is insured within a group contract will be given a?
A person who is insured within a group contract will be given a?
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When an employee is terminated, which statement about a group term life conversion is true?
When an employee is terminated, which statement about a group term life conversion is true?
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Which of the following statements about noncontributory employee group life insurance is FALSE?
Which of the following statements about noncontributory employee group life insurance is FALSE?
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An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be?
An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be?
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Which of the following is an important underwriting principle of group life insurance?
Which of the following is an important underwriting principle of group life insurance?
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S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
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Which requirement must be met for an association to be eligible for a group life plan?
Which requirement must be met for an association to be eligible for a group life plan?
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Study Notes
Group Term Life Insurance Features
- Conversion feature allows individuals to leave the group while still maintaining coverage without needing to prove insurability.
- Certificates of coverage are provided to employees under trustee group life policies.
Group Life Policy Provisions
- Key provisions of group life policies include conversion rights, grace periods, and incontestable periods but do not require accidental coverage.
- Insured individuals within a group contract receive a certificate instead of an individual policy.
Conversion Rights Upon Termination
- If an employee is terminated, group term life coverage may be converted to an individual term life policy, and policy proceeds will be paid if the employee dies during the conversion period.
Noncontributory Employee Group Life Insurance
- Noncontributory plans require all eligible employees to be covered with no evidence of insurability, and typically offer conversion rights.
- A false statement concerning noncontributory plans is that a minimum number of employees must participate.
Retirement and Policy Conversion
- Employees with significant tenure, such as 20 years, can convert their group life contracts to individual permanent policies at individual rates upon retirement.
Underwriting Principles
- An important underwriting principle mandates that all individuals in the group must be covered, ensuring inclusivity.
- The group must be formed for an inherent purpose beyond merely acquiring insurance.
Claims During Conversion
- In the event of an insured individual dying while converting their group life insurance, full benefits are payable under the master contract regardless of the conversion status.
Eligibility Requirements for Associations
- An association must be formed for a legitimate purpose other than acquiring insurance to qualify for a group life plan, rejecting the notion that the sole purpose can be to obtain insurance.
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Description
Test your knowledge on the key concepts of group life insurance as covered in Chapter 6. This quiz focuses on the specific features, rights, and coverage eligibility under group life policies. Perfect for students preparing for an exam or professionals wanting to refresh their understanding.
