Chapter 7: Group Life Insurance

10 Questions | Total Attempts: 14

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Chapter 7: Group Life Insurance

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Questions and Answers
  • 1. 
    All of the following are characteristics of a Group Life Insurance Plan EXCEPT
    • A. 

      Group underwriting

    • B. 

      Master contract

    • C. 

      Individual underwriting

    • D. 

      Probationary period

  • 2. 
    Converting a group plan to permanent life insurance requires
    • A. 

      Submitting proof of insurability

    • B. 

      Paying a lower premium

    • C. 

      Converting to term life insurance

    • D. 

      The conversion being applied for within 31 days of termination

  • 3. 
    The conversion privilege under a group life plan allows an employee to convert to a(n)
    • A. 

      Family plan with another insurer

    • B. 

      Individual plan with another insurer that has better rates

    • C. 

      Individual plan upon employment termination

    • D. 

      Individual policy in the spouse's name

  • 4. 
    An employee under a group insurance policy has the right to name a beneficiary and the right to
    • A. 

      Remain on the group plan in the event of employment termination

    • B. 

      Cash surrender the existing policy

    • C. 

      Change the policy provisions

    • D. 

      Convert to an individual policy in the event of employment termination

  • 5. 
    Which of these factors would an insurer consider when determining whether to accept a group life plan?
    • A. 

      Number of dependents

    • B. 

      Incontestable period

    • C. 

      Average age

    • D. 

      Grace period

  • 6. 
    The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
    • A. 

      Certificate of Authority

    • B. 

      Consumer report

    • C. 

      Coverage document

    • D. 

      Certificate of coverage and benefits

  • 7. 
    A non-contributory health insurance plan helps the insurer avoid
    • A. 

      Adverse selection

    • B. 

      State compliance

    • C. 

      The underwriting process

    • D. 

      Tax deductions

  • 8. 
    A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
    • A. 

      Employer group

    • B. 

      Employee group

    • C. 

      Association or labor group

    • D. 

      Multiple coalition

  • 9. 
    Under a group life policy, the insurer will issue an individual [blank] to the policyowner for delivery to each person insured.
    • A. 

      Policy

    • B. 

      Certificate

    • C. 

      Application

    • D. 

      Rider

  • 10. 
    What does the Group Life underwriting risk selection process help protect insurance companies from?
    • A. 

      Risk aversion

    • B. 

      Natural selection

    • C. 

      Adverse selection

    • D. 

      Risk management