Group life insurance – Lesson 7 Flashcards Preview

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Flashcards in Group life insurance – Lesson 7 Deck (19)
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0
Q

What is the time period called when an employee may sign up for insurance coverage?

A

Eligibility period.

1
Q

What is a disadvantage of group insurance?

A

No individual selection

2
Q

The amount of insurance provided by employer for employees may be based on:

A
  1. Position
  2. Earnings
  3. Flat benefit
3
Q

A group policy in which the employer pays the entire premium is called:

A

Noncontributory

4
Q

What percentage of employees must participate in a contributory group policy?

A

75%

5
Q

In group life insurance, the individual members do not have to prove insurability. True or false?

A

True

6
Q

Why should an employee consider signing up for a group life policy during the eligibility period?

A

there will be no requirement to provide proof of insurability.

7
Q

Group life insurance commonly is:

A

Annual renewable term insurance

8
Q

How many days does an employee have to convert from a group life insurance policy to an individual policy once he has been laid off from the company?

A

31 days to convert

9
Q

What does an employee receive as evidence of coverage under a group life insurance policy?

A

Certificate of insurance

10
Q

Credit life insurance pays the death benefit to whom?

A

The lender

11
Q

Blanket insurance would be used to ensure who?

A
  1. Students at a university
  2. Scouts at girl/boy scout campgrounds
  3. Volunteer groups
12
Q

A multiple employer trust (MET) is:

A

An entity of small business owners formed to purchase group insurance to cover employees.

13
Q

Premiums in group insurance are based on what?

A

Loss experience

14
Q

What is the advantage of group insurance?

A

No requirement of proof of insurability.

15
Q

Who are “Carriers”?

A

Insurance companies or other entity responsible for the payment of benefits.

16
Q

Eligibility requirements for a group life insurance policy requires a group to be how many?

A

Two or more.

17
Q

Normally, there is a probationary period required for new employees in group insurance. True or false?

A

True

18
Q

What is the length of time for the probationary period?

A

From a month to six months in length.