6 – Group Life Insurance

Employee

annually renewable term

Group was formed for a purpose other than acquiring insurance

Everyone must be covered in the group. An important underwriting principle of group life is that all or a large percentage of persons in the group must be covered by the insurance.

The correct answer is "A minimum number of employees is required to participate". Noncontributory employee group life insurance plans must cover ALL eligible employees at all times.

contributory plan

The correct answer is "Policy proceeds will be paid if the employee dies during the conversion period". An individual must apply for individual coverage within 31 days after the date of group coverage termination. An individual is covered under the group policy during the conversion period.

Contributory

Portion of the premiums paid for by the employer may be a tax deduction

Conversion The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.

certificate

Accidental An AD&D provision is not required in a group life policy.

converted to an individual permanent policy at an individual rate

$25,000 individual whole life policy

The correct answer is "the entire cost of the plan is paid for by the employer". When an employer provides noncontributory group term life insurance, the employer pays the entire cost of the plan.

Full benefits are payable under the Master contract