All Of These Are Correct Concerning Group Life Insurance Except

Question:

Answer: Evidence of insurability is not required to renew coverage.

The correct answer is: The policy is issued for one year and may be renewed annually with evidence of insurability.

Question: All of the following are true regarding group life insurance contracts, EXCEPT:

Insureds do not own the policy.
b. The group must exist naturally.
c. Enrollees must provide proof of insurability.
d. Premiums are based on the claims experience of the group as a whole.
Answer: Evidence of insurability must be provided if an eligible individual enrolls after the enrollment period.
The correct answer is: Evidence of insurability is never required for enrollment.
Question: All of the following are standard provisions under a group life insurance policy, EXCEPT:
Answer: The grace period under group life insurance policies is 31 days.
The correct answer is: Grace period of 61 days
Question: Which of the following is life insurance that covers federal employees?
Answer: FEGLI is the Federal Employees Group Life Insurance and provides coverage to federal employees, retirees, and their family members.
The correct answer is: FEGLI
Question: If employees are not notified of their right to conversion under a group life insurance policy, what is the MAXIMUM number of days allotted to convert to individual life insurance?
Answer: The conversion period is limited to a maximum of 60 days from the date of group coverage termination. The conversion period is limited to a maximum of 60 days from the date of group coverage termination.
The correct answer is: 60
Question: In employer-sponsored group insurance, the employer is the _______________, and the employee is the _______________.
Answer: In employer-sponsored group insurance, the employer is the policyowner and the employee is the insured.
The correct answer is: Policyowner; insured
Question: Unlike group life insurance, insureds under franchise plans each receive:
a. Their own policy
b. A master contract only
c. A certificate of insurance only
d. A master contract and certificate of insurance
Answer: Distinct from group insurance policies, individuals insured under franchise policies each receive their own individual policy.
The correct answer is: Their own policy
Question: Serena dies 15 days after her group life insurance coverage is terminated. She did not apply for individual coverage. Which of the following is true?
Answer: The insured is covered under the group policy during the conversion period. The full death benefit will be paid to Serena’s beneficiary.
The correct answer is: Serena’s beneficiary will receive the full death benefit.
Question: How long must an individual have been insured under the group life insurance plan in order to be eligible for the conversion privilege?
Answer: Group members must have been insured under the group life insurance plan for at least five years to be eligible to convert their group coverage to individual coverage.
The correct answer is: 5 years
Question: All of the following statements are true of group life insurance contracts, EXCEPT:
Answer: Enrollees in a group life insurance plan usually do not have to provide proof of insurability.
The correct answer is: Enrollees must provide proof of insurability.