Group Life-7 Flashcards Preview

Insurance > Group Life-7 > Flashcards

Flashcards in Group Life-7 Deck (19)
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1
Q

Contributory

A

An employee group plan in which employees share the cost

2
Q

Noncontributory

A

An employee group plan in which employees do not share in the cost

3
Q

Employees are called

A

Certificate holders

4
Q

Employers are called

A

Contract holders

5
Q

Preferred

A

Low risk

Lower premiums

6
Q

Standard

A

Average risk

No extra ratings or restrictions

7
Q

Substandard

A

High risk
Rated up
Higher premiums

8
Q

Declined

A

Not insurable

Potential of loss to insurance company is too high

9
Q

Group term life

A

Normally offered as a guaranteed annual renewable term policy

10
Q

Group whole life

A

Offers permanent protection for insured members under this group

11
Q

Dependent coverage

A

Most group life insurance policies cover the members dependents

12
Q

Determining eligibility

A

Must benefit atleast 70% of all employees

13
Q

Conversion to individual policy

A

If a members coverage is terminated the member and his dependents may convert their group coverage to individual whole life coverage

14
Q

Conversion period

A

An individual must apply for individual coverage within 31 days after the date of group coverage termination

15
Q

Group policy termination

A

If the master policy is terminated each individual member who has been insured for at least 5 years is permitted to convert to an individual policy

16
Q

Franchise life insurance

A

Used where participants are employees of a common employer

17
Q

Group credit life

A

Are setup banks, finance companies, etc.

18
Q

Blanket life insurance

A

Covers groups of people exposed to the same hazard

19
Q

Group permanent life

A

Some form of permanent or whole life insurance as the underlying policy