Group Life Insurance UPDATED Exam
Questions and CORRECT Answers
A method of marketing group benefits to employers who have a small number of employees
is the
MET
Blanket Life Insurance
ART
Small Employer Trust - Correct Answer- MET
(A method of marketing group benefits to employers who have a small number of employees
is the multiple employer trust (MET). METs may provide a single type of insurance (such as
health insurance) or a wide range of coverage (life, medical expense, and disability income
insurance).
Under a group life policy, the insurer will issue an individual _____ to the policyowner for
delivery to each person insured.
policy
certificate
application
rider - Correct Answer- certificate
What are blanket life policies?
Policies that are mass-marketed
Policies that cover everyone in a household
Policies that are issued by the Guaranty Association covering multiple insurers
Policies that cover a group of people exposed to a common hazard - Correct Answer- Policies
that cover a group of people exposed to a common hazard
(Blanket life insurance covers a group of people exposed to a common hazard. Individuals do
not need to apply for blanket coverage and insurers do not need to provide each person with a
certificate of coverage. Insureds are not specifically named in the policy because coverage is
temporary.)
Which of the following makes a group life policy different from an individual life policy?
Higher premium
, Higher underwriting costs
Individual underwriting
Lower premiums - Correct Answer- Lower premiums
(The primary reason for a group life plan having lower premiums is the lower administrative,
operational, and selling expenses associated with servicing one contract, as opposed to
several individual contracts.)
When an employer pays the entire premium of a group plan, the plan is called
Rebating
Waiver of premium
Contributory
Noncontributory - Correct Answer- Noncontributory
(In a noncontributory plan, an employer pays the entire premium and the employee is not
expected to contribute.)
The insured is which one of these in group life insurance?
Applicant
Policyowner
Beneficiary
Certificate holder - Correct Answer- Certificate holder
(Each employee eligible to participate in the plan fills out an enrollment card and is given a
certificate of insurance, which summarizes the coverage terms and explains the employee's
rights under the group contract.)
In group life policies, individual certificates are given to
Each policyholder
Each insured
Each applicant
The insurance agent - Correct Answer- Each insured
(Each employee eligible to participate in a group plan fills out an enrollment card and is
given a certificate of coverage. This certificate summarizes the coverage terms and explains
the employee's rights under the group contract.)
Questions and CORRECT Answers
A method of marketing group benefits to employers who have a small number of employees
is the
MET
Blanket Life Insurance
ART
Small Employer Trust - Correct Answer- MET
(A method of marketing group benefits to employers who have a small number of employees
is the multiple employer trust (MET). METs may provide a single type of insurance (such as
health insurance) or a wide range of coverage (life, medical expense, and disability income
insurance).
Under a group life policy, the insurer will issue an individual _____ to the policyowner for
delivery to each person insured.
policy
certificate
application
rider - Correct Answer- certificate
What are blanket life policies?
Policies that are mass-marketed
Policies that cover everyone in a household
Policies that are issued by the Guaranty Association covering multiple insurers
Policies that cover a group of people exposed to a common hazard - Correct Answer- Policies
that cover a group of people exposed to a common hazard
(Blanket life insurance covers a group of people exposed to a common hazard. Individuals do
not need to apply for blanket coverage and insurers do not need to provide each person with a
certificate of coverage. Insureds are not specifically named in the policy because coverage is
temporary.)
Which of the following makes a group life policy different from an individual life policy?
Higher premium
, Higher underwriting costs
Individual underwriting
Lower premiums - Correct Answer- Lower premiums
(The primary reason for a group life plan having lower premiums is the lower administrative,
operational, and selling expenses associated with servicing one contract, as opposed to
several individual contracts.)
When an employer pays the entire premium of a group plan, the plan is called
Rebating
Waiver of premium
Contributory
Noncontributory - Correct Answer- Noncontributory
(In a noncontributory plan, an employer pays the entire premium and the employee is not
expected to contribute.)
The insured is which one of these in group life insurance?
Applicant
Policyowner
Beneficiary
Certificate holder - Correct Answer- Certificate holder
(Each employee eligible to participate in the plan fills out an enrollment card and is given a
certificate of insurance, which summarizes the coverage terms and explains the employee's
rights under the group contract.)
In group life policies, individual certificates are given to
Each policyholder
Each insured
Each applicant
The insurance agent - Correct Answer- Each insured
(Each employee eligible to participate in a group plan fills out an enrollment card and is
given a certificate of coverage. This certificate summarizes the coverage terms and explains
the employee's rights under the group contract.)
