Chapter 10 Group Life Insurance MCQ Flashcards

With regard to group insurance plans, which of the following statements is correct?
A. Employees generally pay for the entire premium
B. The sponsoring employer of a group insurance plan is given a master certificate of insurance that lists the names of all employees covered by the plan.
C. Per unit of benefits, group insurance generally is available at rates lower than those for individual plans
D. Group insurance plans are a means for employers to provide a benefit for their key employees, without having to include all employees

Group insurance plans that require employees to pay a portion of the premium are called
A. underwritten
B. contributory
C. participatory
D. shared

All of the following statements pertaining to the conversion privilege of group term life insurance are correct except
A. an insured employee typically has 31 days following termination of employment in which to convert the group insurance
B. an insured employee must convert to the same type of coverage as was provided under the group plan (that is, term)
C. insured who convert their coverage to individual plans pay a premium rate according to their attained age
D. an insured employee may exercise the conversion privilege regardless of that employee's insurability

Jackie has just signed up to participate in her employer's franchise life insurance program. Which of the following statements is correct?
A. She may not continue the policy if she terminates employment.
B. As the "sponsor" of the program, her employer collects premiums from her and remits them to the insurance company.
C. The employer is given a certificate of insurance.
D. Jackie is allowed to select the type and amount of insurance coverage.

The type of insurance most frequently used in group life plans is
A. annually renewable term
B. 10-year renewable term
C. limited pay whole life
D. single-premium whole life