XCEL Chapter 5 Flashcards

A non-contributory health insurance plan helps the insurer avoid?

All of the following are characteristics of a Group Life Insurance Plan EXCEPT?

What does the Group Life underwriting risk selection process help protect insurance companies from?

Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?

The conversion privilege under a group life plan allows an employee to convert to a(n)?

Converting a group plan to permanent life insurance requires?

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)?

Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.

An employee under a group insurance policy has the right to name a beneficiary and the right to?

Which of these factors would an insurer consider when determining whether to accept a group life plan?

Health Insurance Plans

Non-contributory health insurance plans prevent adverse selection, which occurs when individuals with higher risk are more likely to enroll.

Group Life Insurance

Key components include group underwriting and a master contract; however, individual underwriting is not a characteristic of group plans.
The Group Life underwriting risk selection process is crucial for insurers to protect against adverse selection.

Converting Insurance Policies

If an employee's coverage under a group plan ends due to employment termination, they can opt for conversion to an individual policy.
The conversion privilege allows for transitioning to an individual plan upon employment termination.

Requirements for Conversion

When converting from a group plan to permanent life insurance, it is essential that the conversion application is submitted within 31 days of termination.

Policy Documents

The details regarding coverage, conditions, and limitations in a group contract are outlined in the Certificate of coverage and benefits.
Insurers provide individual certificates to policyholders for each insured individual under group life policies.

Types of Groups

Groups formed for purposes other than insurance procurement, such as associations or labor groups, have a defined structure with a constitution and bylaws.

Employee Rights Under Group Policies

Employees under group insurance policies have the right to name beneficiaries and can convert to an individual policy if they terminate employment.

Considerations for Insurers

When evaluating a group life plan, insurers take into account the average age of members, as this impacts risk assessment.

Test your knowledge with these flashcards from XCEL Chapter 5. This quiz covers important concepts related to health and group insurance plans, including adverse selection and underwriting processes. Ideal for anyone studying for insurance certification exams.