Life Insurance Policies Chapter 3 Quiz

Questions and Answers

All of the following are characteristics of a group life plan except?

There is a requirement to prove insurability on the part of the participants (correct)

The participants receive a certificate of insurance as their proof of insurance

A minimum number of participants is required to write the plan

The cost of the plan is determined by the average age of the group

What type of life insurance is used in group plans?

Flexible premium whole life

Annually renewable term (correct)

Decreasing term

Whole life

All of the following could own group life insurance except?

A group needing low cost insurance (correct)

An alumni group

Group sponsored by an employer

A debtor group

Which of the following statements about group life is correct?

The cost of the coverage is based on the ratio of men and women in the group Signup and view all the answers

All of the following is true regarding group insurance except?

Participants in the policy each receive a policy Signup and view all the answers

If an employee wants to enter the group outside of the open enrollment period to reduce adverse selection, the insurer may?

Require evidence of insurability Signup and view all the answers

In group life policies, certificates of insurance are given to?

Each insured person Signup and view all the answers

In a group life insurance, the employer may select all of the following except?

The beneficiary Signup and view all the answers

Which of the following is generally not considered when underwriting group insurance?

The insured's medical history Signup and view all the answers

All of the following are determined by group life insurance except?

Premiums are determined by the age, sex, and occupation of each individual certificate holder Signup and view all the answers

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years Signup and view all the answers

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called?

Credit life Signup and view all the answers

The death protection component of Universal Life Insurance is always?

Annually renewable term Signup and view all the answers

Which of the following would be the beneficiary in credit life insurance?

Creditor Signup and view all the answers

In which of the following cases would the insured be able to receive the full face amount from a whole life policy?

If the insured lives to age 100 Signup and view all the answers

Study Notes

Group Life Insurance Characteristics

Group life insurance requires a minimum number of participants to initiate the plan.
The cost is influenced by the average age of the group, not by individual participants' insurability.
Each participant receives a certificate of insurance, not an individual policy.

Types of Policies in Group Plans

Annually renewable term life insurance is commonly utilized in group life insurance plans.

Ownership of Group Life Insurance

Various groups can own group life insurance, excluding those solely needing low-cost options.

Key Statements on Group Life Insurance

Coverage costs are based on the gender ratio within the group, not individual medical history or examinations.

Participant Certificates

Participants in a group insurance plan receive a certificate indicating coverage rather than individual policies.

Group Insurance Underwriting

When underwriting group insurance, individual medical histories are typically not considered, with focus on the nature and past claims of the group instead.

Conversion to Individual Policies

Employees can convert to individual insurance if covered for at least five years under the group plan upon its termination.

Credit Life Insurance

Specifically designed for debtors, credit life insurance pays off loans if the debtor dies before full repayment.
The beneficiary in credit life insurance is typically the creditor.

Universal Life Insurance

The death protection component of Universal Life Insurance is based on annually renewable term.

Whole Life Insurance Benefits

The face amount of a whole life policy is fully accessible if the insured lives to age 100, aligning with the policy's permanent nature.

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Description

Test your knowledge on life insurance policies with this quiz based on Chapter 3. Evaluate your understanding of group life plans, their characteristics, and key concepts in insurance. Perfect for students and professionals wanting to refresh their memory.