RMI Final Exam Study Guide –
Chapter 16: Employee Benefits,
Group Life and Health
Insurance PDF (2026–2027)
Which of the following statements about group insurance is true? - ANSWER-The
actual experience of a large group is a factor in determining the premium that is
charged
Which of the following statements about group insurance underwriting principles
are true? - ANSWER-Neither I or II
Which of the following statements about group insurance underwriting principles
is true? - ANSWER-The employer should ideally share in the cost of a group
insurance plan
Reasons for having a minimum participation requirement before a group is eligible
for insurance include which? - ANSWER-(BOTH I & II)
To lower the expense rate per unit of insurance
To minimize the possibility of insuring a group which consists largely of unhealthy
individuals
, Which of the following statements about the eligibility requirements for group
insurance is true? - ANSWER-An employee must be actively at work on the day the
employees group insurance becomes effective
The period of time during which an employee can sign up for group insurance
coverage without furnishing evidence of insurability is called? - ANSWER-Eligibility
period
Which of the following statements about group term life insurance is true? -
ANSWER-Many employers provide a reduced amount of coverage on retired
employees
High deductible group health insurance plans have all of the following
characteristics except? - ANSWER-Low coverage limits
Which of the following statements about accidental death and dismemberment
(AD&D) insurance are true? - ANSWER-(BOTH I & II)
The principle sum is paid of the employee dies in an accident
A percentage of the principal sum is paid for certain types of dismemberments
Which of the following statements about group universal life insurance is true? -
ANSWER-The interest rate credited to a policy varies over time, but is subject to a
minimum guarantee
Which of the following statements about Blue Cross Plans are true? - ANSWER-(I
ONLY)
Chapter 16: Employee Benefits,
Group Life and Health
Insurance PDF (2026–2027)
Which of the following statements about group insurance is true? - ANSWER-The
actual experience of a large group is a factor in determining the premium that is
charged
Which of the following statements about group insurance underwriting principles
are true? - ANSWER-Neither I or II
Which of the following statements about group insurance underwriting principles
is true? - ANSWER-The employer should ideally share in the cost of a group
insurance plan
Reasons for having a minimum participation requirement before a group is eligible
for insurance include which? - ANSWER-(BOTH I & II)
To lower the expense rate per unit of insurance
To minimize the possibility of insuring a group which consists largely of unhealthy
individuals
, Which of the following statements about the eligibility requirements for group
insurance is true? - ANSWER-An employee must be actively at work on the day the
employees group insurance becomes effective
The period of time during which an employee can sign up for group insurance
coverage without furnishing evidence of insurability is called? - ANSWER-Eligibility
period
Which of the following statements about group term life insurance is true? -
ANSWER-Many employers provide a reduced amount of coverage on retired
employees
High deductible group health insurance plans have all of the following
characteristics except? - ANSWER-Low coverage limits
Which of the following statements about accidental death and dismemberment
(AD&D) insurance are true? - ANSWER-(BOTH I & II)
The principle sum is paid of the employee dies in an accident
A percentage of the principal sum is paid for certain types of dismemberments
Which of the following statements about group universal life insurance is true? -
ANSWER-The interest rate credited to a policy varies over time, but is subject to a
minimum guarantee
Which of the following statements about Blue Cross Plans are true? - ANSWER-(I
ONLY)
