Podcast
Questions and Answers
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
Group life insurance policies are generally written as?
Group life insurance policies are generally written as?
annually renewable term
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?
Group was formed for a purpose other than acquiring insurance
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?
Signup and view all the answers
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?
Signup and view all the answers
What type of group insurance plan involves employees sharing the cost?
What type of group insurance plan involves employees sharing the cost?
Signup and view all the answers
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?
Signup and view all the answers
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Signup and view all the answers
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group term life plan to all its eligible employees?
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group term life plan to all its eligible employees?
Signup and view all the 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?
Signup and view all the answers
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?
Signup and view all the answers
Which provision is NOT a requirement in a group life policy?
Which provision is NOT a requirement in a group life policy?
Signup and view all the answers
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?
Signup and view all the answers
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a?
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a?
Signup and view all the answers
A noncontributory group term life plan is characterized by?
A noncontributory group term life plan is characterized by?
Signup and view all the answers
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?
Signup and view all the answers
Study Notes
Group Life Insurance Key Concepts
- Eligibility for a certificate of coverage under a trustee group life policy extends to employees.
- Group life insurance policies are typically structured as annually renewable term policies.
Association Group Life Plans
- To qualify for a group life plan, an association must be formed for purposes other than purchasing insurance.
Underwriting Principles
- A crucial underwriting principle is that a significant percentage of individuals within the group must be insured.
Noncontributory vs. Contributory Plans
- Noncontributory employee group life insurance requires coverage for all eligible employees; a minimum participation number is NOT necessary.
- A contributory plan involves shared costs between employees and the employer.
Group Term Life Coverage
- Upon termination, if an employee dies during the conversion period, policy proceeds will be paid. Individuals can apply for individual coverage within 31 days post-termination.
Tax Treatment of Group Life Insurance
- Employers providing $50,000 in coverage under a contributory plan may deduct a portion of premiums paid for tax purposes.
Conversion Privilege
- The conversion feature allows individuals to leave group term insurance and obtain separate coverage without needing to provide evidence of insurability.
- An employee can convert their group life contract to an individual permanent policy when retiring.
Policy Provisions
- Group life policies are not required to include accidental death and dismemberment (AD&D) provisions.
- Upon termination, a group coverage of $25,000 may be converted to an individual whole life policy valued at the same amount.
Claim Process
- If an individual dies while converting group life insurance, full benefits will be payable to the beneficiary under the Master contract.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge with these flashcards on group life insurance. The flashcards cover essential concepts such as eligibility, policy types, and requirements for associations. Perfect for insurance students or professionals looking to reinforce their understanding of group life insurance.
