Group Life Insurance Exam 2023;All possible questions
and answers solved correctly
Under a trustee group life policy, who would be eligible for a certificate of
coverage?
Employee
Group life insurance policies are generally written as
annually renewable term
Which requirement must be met for an association to be eligible for a group life
plan?
Group was formed for a purpose other than acquiring insurance
Which of the following is an important underwriting principle of group life
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.
Which of the following statements about noncontributory employee group life
insurance is FALSE?
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.
What type of group insurance plan involves employees sharing the cost?
contributory plan
When an employee is terminated, which statement about a group term life
conversion is true?
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.
If its employees share in the cost of insurance, what type of group life insurance
plan would a corporation have?
Contributory
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
What group term life feature permits an individual to depart from the group and
continue to be covered without providing evidence of insurability?
Conversion
The conversion privilege allows an individual to leave the group term plan and continue
his or her insurance without providing evidence of insurability.
A person who is insured within a group contract will be given a
certificate
Which provision is NOT a requirement in a group life policy?
and answers solved correctly
Under a trustee group life policy, who would be eligible for a certificate of
coverage?
Employee
Group life insurance policies are generally written as
annually renewable term
Which requirement must be met for an association to be eligible for a group life
plan?
Group was formed for a purpose other than acquiring insurance
Which of the following is an important underwriting principle of group life
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.
Which of the following statements about noncontributory employee group life
insurance is FALSE?
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.
What type of group insurance plan involves employees sharing the cost?
contributory plan
When an employee is terminated, which statement about a group term life
conversion is true?
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.
If its employees share in the cost of insurance, what type of group life insurance
plan would a corporation have?
Contributory
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
What group term life feature permits an individual to depart from the group and
continue to be covered without providing evidence of insurability?
Conversion
The conversion privilege allows an individual to leave the group term plan and continue
his or her insurance without providing evidence of insurability.
A person who is insured within a group contract will be given a
certificate
Which provision is NOT a requirement in a group life policy?
