Business Law /Chapter 6 Group Life Insurance Quiz
Chapter 6 Group Life Insurance Quiz
This deck covers key concepts related to group life insurance, including noncontributory and contributory plans, conversion options, and policy features.
A noncontributory group term life plan is characterized by
The entire cost of the plan is paid for by the employer
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Key Terms
Term
Definition
A noncontributory group term life plan is characterized by
The entire cost of the plan is paid for by the employer
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Contributory
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
Nothing. Employers cannot report additional taxable income to employees covered under a group life policy paid for by the employer.
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All individuals covered under a group contract will receive
Certificate
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An employee with $25,000 group term coverage was recently fired. This employee's group coverage may be converted to a
$25,000 individual whole life policy
Company XYZ offers a group term life insurance plan to its employees. What does each employee covered under this plan receive?
Certificate of insurance
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| Term | Definition |
|---|---|
A noncontributory group term life plan is characterized by | The entire cost of the plan is paid for by the employer |
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? | Contributory |
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 | Nothing. Employers cannot report additional taxable income to employees covered under a group life policy paid for by the employer. |
All individuals covered under a group contract will receive | Certificate |
An employee with $25,000 group term coverage was recently fired. This employee's group coverage may be converted to a | $25,000 individual whole life policy |
Company XYZ offers a group term life insurance plan to its employees. What does each employee covered under this plan receive? | Certificate of insurance |
A non-contributory plan requires ________ participation of all eligible employees | 100% |
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? | Policy proceeds will be paid if the employee dies during the conversion period |
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? | Conversion |
Which provision is NOT a requirement in a group life policy? | Accidental |
An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be | Converted to an individual permanent policy at an individual rate |