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Worksheets6-GROUP LIFE
Total questions: 20
Worksheet time: 10mins
Company XYZ offers a group Term Insurance plan to its employees. What does each employee covered under this plan receive?
Master policy
Receipt of Coverage
Individual policy
Certificate of Insurance
An employee with $25,000 term life coverage was recently fired. This employee’s group coverage may be converted to a:
$125,000 individual whole life policy
$25,000 modified whole life policy
$25,000 individual term life policy
$25,000 individual whole life policy
All individuals covered under a group contract will receive a(n)
Certificate
Receipt of coverage
Master policy
Individual policy
What type of group insurance plan involves employees sharing the cost?
Contributory plan
Non- contributory plan
Qualified plan
Non-qualified plan
When an employee is terminated, which statement about group term life conversion is true?
Employee must convert group term life coverage into an individual term life policy
Employee must provide evidence of insurability for conversion
Policy proceeds will be paid if the employees die during the conversion period
Policy proceeds will NOT be paid if the employee dies during the conversion period
Which of the following is an important underwriting principle of group life insurance?
Physical examinations are required
Everyone must be covered in the group
Employer must pay for the entire premium
The group must be formed for the purpose of getting affordable insurance
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for the purpose other than acquiring insurance
Group must establish a President
Group must have at least 10 Members
Group was formed for the purpose of acquiring insurance
S, while in the process of covering her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
No benefits are payable under the Master contract
Full benefits are Payable under the Master contract
Full Benefits are payable under the converted policy
Benefits less required premium are payable under the converted policy
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have
Noneligible
Noncontributory
Eligible
Contributory
An employee of 20 years recently retired at age 591/2, This employee’s group life contract can be:
Converted to an individual permanent policy at an individual rate
Converted to an individual permanent policy at a group rate
Continued at an individual rate
Continued at a group rate
Which provision is NOT a requirement in a group policy?
Conversion
Grace Period
Incontestable period
Accidental
A noncontributory group term life plan is characterized by:
The entire cost of the plan is paid for by the employer
The entire cost of the plan is paid for by the employee
The cost of the plan is shared by both employer and employee
Both employer and employee must provide 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?
Entire Contract
Owner’s rights
Nonforfeiture options
Conversion
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?
Portion of the premiums paid for by the employer may be a tax deduction
Portion of the premiums paid for by the employee may be a tax deduction
Portion of the death proceeds are taxable to the beneficiary
Portion of the death proceeds are taxable to the estate
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Corporation
Employee
Employer
Labor Union
A non- contributory plan requires ___ participation of all eligible employees.
25%
50%
75%
100%
Which of the following statements about noncontributory employee group life insurance is FALSE?
A minimum number of employees is required to participate
All eligible employees must be covered
No evidence of insurability required
Must have conversion rights
If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?
The annual premium divided by the number of employees
The entire premium paid in a year
Half the premium paid in a year
Nothing
Group life insurance policies are generally written as:
A term rider
Annually renewable term
Increasing term
Group whole life
When an employee is terminated, which statement about a group term life conversion is true?
Employee must convert group term life coverage into an individual term life policy
Employee must provide evidence of insurability for conversion
Policy proceeds will be paid if the employee dies during the conversion period
Policy proceeds will NOT be paid if the employee dies during the conversion period
