Group Life Insurance Concepts

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Questions and Answers

What type of group plan requires 100% participation?

Noncontributory (correct)
Voluntary
Contributory
Flexible

Conversion from a group policy to an individual policy must be made within a maximum of how many days of termination from the group coverage?

What type of group plan requires 75% participation?

Optional
Noncontributory
Contributory (correct)
Mandatory

Noncontributory plans must have 100% participation.

True (A) Signup and view all the answers

How many days are Tim's employees allotted to convert their group life coverage to individual coverage after termination?

31 days Signup and view all the answers

Serena's beneficiary will receive the full death benefit, even though she did not apply for individual coverage.

True (A) Signup and view all the answers

Contributory plans require at least 75% participation.

True (A) Signup and view all the answers

How long can Jacob continue his group coverage after becoming totally disabled?

6 months Signup and view all the answers

Which of the following statements is false regarding the conversion option for group life insurance policies?

The converted coverage must be whole life. (A) Signup and view all the answers

Flashcards

Noncontributory Group Plan

A group insurance plan where the employer pays the entire premium and 100% of eligible employees must participate.

Group to Individual Conversion Period

The maximum number of days an individual has to convert their group policy to an individual policy after termination from the group coverage.

Contributory Group Plan

A group insurance plan where employees contribute to the premium, requiring at least 75% participation.

Group Life Conversion Period

Number of days an employee has to convert group life coverage to an individual policy after termination

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Group Coverage Continuation

Coverage can be continued for up to 6 months.

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Study Notes

Group Life Insurance Plans

Noncontributory Plan: Employer fully pays premiums; requires 100% participation from employees.
Contributory Plan: Coverage costs are shared by employer and employees; requires at least 75% participation.

Conversion Periods

Conversion from a group policy to individual policy must occur within 60 days of termination of group coverage.
Employees have 31 days to convert group life coverage to individual coverage after termination notification.

Coverage upon Termination

Insured individuals are covered under the group policy during the conversion period; beneficiaries receive full death benefits if the insured passes away during this time.

Disability Provisions

Group members who become totally disabled can continue group coverage for a maximum of 6 months post-termination without any change in premium rate.

Conversion Coverage Types

Converted coverage can be either term or whole life insurance based on insured's needs, contradicting the false assertion that only whole life coverage is permissible.