Insurance MCQ

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? Answer: Full benefits are payable under the Master contract

A noncontributory group term life plan is characterized by Answer: the entire cost of the plan is paid for by the employer

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be Answer: converted to an individual permanent policy at an individual rate

Group life insurance policies are generally written as Answer: annually renewable term

Which of the following is an important underwriting principle of group life insurance? Answer: Everyone must be covered in the group

A person who is insured within a group contract will be given a Answer: certificate

When an employee is terminated, which statement about a group term life conversion is true? Answer: 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? Answer: Conversion

Which of the following statements about noncontributory employee group life insurance is FALSE? Answer: A minimum number of employees is required to participate

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

In an employer group plan, what is the name of the policy issued to the employer? A) Certificate of insurance. B) Certificate of authority. C) Master contract. D) Group contract. Answer: C) Master contract.

What action may the insurer take on future policy anniversaries after a group life master policy has been issued? A) Insurer can deny claims after a group has excessive claims. B) Cancel insurance on group members who become terminally ill. C) Insurer can adjust premium. D) Insurer can make no changes to policy. Answer: C) Insurer can adjust premium.

The insured is which one of these in group life insurance? A) Certificate holder. B) Policyowner. C) Beneficiary. D) Applicant. Answer: A) Certificate holder.

Which of the following is NOT considered to be a group permanent plan? A) Group universal. B) Group credit. C) Group ordinary. D) Group paid-up. Answer: B) Group credit.

To what is a group life plan in which the employer pays the entire cost commonly referred? A) Group permanent plan. B) Group paid-up plan. C) Noncontributory plan. D) Contributory plan. Answer: C) Noncontributory plan.

All of the following conditions are included in group credit life programs EXCEPT? A) Benefits are paid to the creditor. B) Benefits are paid to the borrower's beneficiary. C) Premiums are usually paid by the borrower. D) The amount of insurance per borrower is limited. Answer: B) Benefits are paid to the borrower's beneficiary.

All of the following are distinguishing characteristics of group life insurance EXCEPT? A) Flow of insureds. B) Group underwriting. C) Master contract. D) Individual policies. Answer: D) Individual policies.

All of these are requirements of a group life plan EXCEPT? A) A minimum number of participants are required. B) Participants are required to provide evidence of insurability. C) The cost of the plan is dictated by average age of group. D) Participants receive a certificate of coverage. Answer: B) Participants are required to provide evidence of insurability.

All of the following employees would normally be excluded from a group term life plan EXCEPT? A) A full-time employee who has been on the job 2 years. B) Employee works less than 3 months a year. C) Employee with less than 3 months of employment. D) Employee who works part time each week. Answer: A) A full-time employee who has been on the job 2 years.

Abbey's employer recently made group insurance available for its employees as a benefit. After filling out her enrollment card, she is given a(an)? A) application. B) certificate of insurance. C) receipt, D) policy. Answer: B) certificate of insurance.