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Questions and Answers
What type of group plan requires 100% participation?
What type of group plan requires 100% participation?
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?
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?
60
What type of group plan requires 75% participation?
What type of group plan requires 75% participation?
Noncontributory plans must have 100% participation.
Noncontributory plans must have 100% participation.
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How many days are Tim's employees allotted to convert their group life coverage to individual coverage after termination?
How many days are Tim's employees allotted to convert their group life coverage to individual coverage after termination?
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Serena's beneficiary will receive the full death benefit, even though she did not apply for individual coverage.
Serena's beneficiary will receive the full death benefit, even though she did not apply for individual coverage.
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Contributory plans require at least 75% participation.
Contributory plans require at least 75% participation.
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How long can Jacob continue his group coverage after becoming totally disabled?
How long can Jacob continue his group coverage after becoming totally disabled?
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Which of the following statements is false regarding the conversion option for group life insurance policies?
Which of the following statements is false regarding the conversion option for group life insurance policies?
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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.
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Description
Test your knowledge on essential concepts related to group life insurance, including participation requirements and conversion policies. This quiz features flashcards that cover critical definitions and terms in the field of insurance.
