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FFL Life Course Group Life Insurance

Economics10 CardsCreated 3 months ago

This flashcard focuses on conversion rights after termination of employment. It tests your knowledge of how group life insurance can be converted to individual coverage, and what type and amount of policy the former employee is entitled to.

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a:

<> $25,000 individual whole life policy

<> $25,000 individual term life policy

<> $25,000 modified whole life policy

<> $125,000 individual whole life policy

$25,000 individual whole life policy

~ In this situation, a terminated employee may covert to a $25,000 individual whole life policy

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Key Terms

Term
Definition

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a:

<> $25,000 individual whole life policy

<> $25,000 individual term life policy

<> $25,000 modified whole life policy

<> $125,000 individual whole life policy

$25,000 individual whole life policy

~ In this situation, a terminated employee may cov...

Under a trustee group life policy, who would be eligible for a certificate of coverage?

<> Labor union

<> Employer

<> Corporation

<> Employee

Employee

~An employee would be a certificate holder under a trustee group life policy

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 a group rate
<> continued at a group rate
<> continued at an individual rate
<> converted to an individual permanent policy at an individual rate

converted to an individual permanent policy at an individual rate
~ In this situation, the insured can convert to a permanent policy at the indi...

Group life insurance policies are generally written as:

<> increasing term

<> annually renewable term

<> group whole life

<> a term rider

annually renewable term

~ Group life insurance policies are generally written as annual...

What type of group insurance plan involves employees sharing the cost?

<> non-contributory plan

<> non-qualified plan

<> qualified plan

<> contributory plan

contributory plan

~ Employees share the cost of group insurance with employer in a cont...

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
<> Employee must convert group term life coverage into an individual term life policy
<> Policy proceeds will NOT be paid if the employee dies during the conversion period
<> Employees must provide evidence of insurability for conversion

Policy proceeds will be paid if the employee dies during the conversion period
~ An individual must apply for individual permanent coverage term...

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TermDefinition

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a:

<> $25,000 individual whole life policy

<> $25,000 individual term life policy

<> $25,000 modified whole life policy

<> $125,000 individual whole life policy

$25,000 individual whole life policy

~ In this situation, a terminated employee may covert to a $25,000 individual whole life policy

Under a trustee group life policy, who would be eligible for a certificate of coverage?

<> Labor union

<> Employer

<> Corporation

<> Employee

Employee

~An employee would be a certificate holder under a trustee group life policy

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 a group rate
<> continued at a group rate
<> continued at an individual rate
<> converted to an individual permanent policy at an individual rate

converted to an individual permanent policy at an individual rate
~ In this situation, the insured can convert to a permanent policy at the individual rates.

Group life insurance policies are generally written as:

<> increasing term

<> annually renewable term

<> group whole life

<> a term rider

annually renewable term

~ Group life insurance policies are generally written as annually renewable term.

What type of group insurance plan involves employees sharing the cost?

<> non-contributory plan

<> non-qualified plan

<> qualified plan

<> contributory plan

contributory plan

~ Employees share the cost of group insurance with employer in a 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
<> Employee must convert group term life coverage into an individual term life policy
<> Policy proceeds will NOT be paid if the employee dies during the conversion period
<> Employees must provide evidence of insurability for conversion

Policy proceeds will be paid if the employee dies during the conversion period
~ An individual must apply for individual permanent coverage termination. An individual is covered under the group policy during the conversion period.

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
<> Group must have at least 10 members
<> Group must establish a President
<> Group was formed for the purpose of acquiring insurance

Group was formed for a purpose other than acquiring insurance
~ Group life insurance can be formed just as long as they are formed for a reason other than to purchase insurance

Which of the following is an important underwriting principle of group life insurance?
<> The group must be formed for the purpose of getting affordable insurance
<> Everyone must be covered in the group
<> Employer must pay for the entire premium
<> Physical examinations are required

Everyone must be covered in the group
~ An important underwriting principle of group life is that all or large percentage of persons in the group must be converted by the insurance

Which is NOT a requirement in a group life policy?

<> Conversion

<> Accidental

<> Incontestable period

<> Grace period

Accidental

~ An AD&D proviso is not required in a group life policy

What group term life feature permits an individual to depart from the group and continue to be converted without providing evidence of insurability?

<> Owner's rights

<> Nonforfeiture options

<> Entire contract

<> Conversion

Conversion
~ The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability