LESSON 6: GROUP LIFE INSURANCE

Principles of Group Insurance

Which of the following best describes the basic principle of group insurance?

	a)	It is less expensive.
	b)	It provides coverage for people who cannot afford individual insurance.
	c)	It is more manageable.
	d)	It provides coverage for a number of people under a single contract.
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A certificate of insurance summarizes the coverage terms and explains the employee's rights under the:

	a)	employment agreement.
	b)	Constitution.
	c)	group contract.
	d)	benefits package.
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Florida law does not set minimum guidelines on the amount of participants required to be considered for contributory group coverage.

	a)	True
	b)	False
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Eligible Groups

Eligible groups to purchase group life insurance typically fall into which of the following categories?

	a)	Single- and multiple-employer groups
	b)	Fraternal organizations
	c)	Labor unions
	d)	Trade associations
	e)	Creditor/debtor Groups
	f)	All of the above
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Any group that is not formulated for insurance coverage purposes alone are eligible to purchase a group life insurance policy. These groups are referred to as "natural groups."

	a)	True
	b)	False
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Group Life Characteristics

Group Permanent Life Insurance can be broken down into three different types of offerings. Match the following offerings with their corresponding descriptions.

a)	When employees contribute to their group plan, they are normally allowed to own the cash portion of the policy. However at the employer's discretion if an employee terminates employment, the cash value can be used to help fund the plan for the remaining employees.	Choose... Group Paid-Up Plans Group Ordinary Plans Group Universal Life Plans
b)	These plans combine term life insurance (paid by the employer) and whole life (paid by the employee). The death benefit is a total of the two plans. At retirement or termination the employee is entitled to the cash value (paid-up) policy.	Choose... Group Paid-Up Plans Group Ordinary Plans Group Universal Life Plans
c)	These plans offer a greater degree of flexibility than is usually found in other group life plans. The employee pays most of the premium payments; however, they are given certain latitude in selecting the amount of insurance and the premium amount to be paid.	Choose... Group Paid-Up Plans Group Ordinary Plans Group Universal Life Plans
a) Group Ordinary Plans b) Group Paid-Up Plans c) Group Universal Life Plans

Permanent Life insurance is another name for ________ Life insurance.

	a)	Term
	b)	Valued
	c)	Variable
	d)	Whole
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Which of the following is NOT a type of offering that would be found under a permanent life insurance plan?

	a)	Group Ordinary plan
	b)	Group Paid-Up plan
	c)	Level Term plan
	d)	Group Universal Life plan
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All group insurance policies must be convertible.

	a)	True
	b)	False
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The Conversion Period for group life insurance is ______ days.

	a)	14
	b)	31
	c)	45
	d)	60
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Any death within the Conversion Period is covered.

	a)	True
	b)	False
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Industrial life policies that total ________ or more in face value can be converted into an ordinary life policy without evidence of insurability.

	a)	$1,000
	b)	$3,000
	c)	$5,000
	d)	$10,000
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Other Forms of Life Insurance

Exceptions to the master policy theme are Franchise, Blanket, and Credit life insurance. Match these with their respective descriptions.

a)	Individually owned policies for small groups.	Choose... Blanket Life Franchise Life Credit Life
b)	Temporary coverage of a specific hazard for a specific group.	Choose... Blanket Life Franchise Life Credit Life
c)	Applies to the relationship between debtor groups and creditor groups.	Choose... Blanket Life Franchise Life Credit Life
a) Franchise Life b) Blanket Life c) Credit Life (Lesson 6.5)

Definitions

Match the following key concepts with their respective definitions.

a)	Issued to the employer under a group plan; contains all the insuring clauses defining employee benefits.	Choose... Enrollment Period Probationary Period Master Policy Experience Rating METs
b)	Review of the previous year's claims experience for a group insurance contract in order to establish premiums for the next period.	Choose... Enrollment Period Probationary Period Master Policy Experience Rating METs
c)	Several small groups of individuals that need life and health insurance but do not qualify for true group insurance band together under state trust laws to purchase insurance at a more favorable rate.	Choose... Enrollment Period Probationary Period Master Policy Experience Rating METs
d)	Specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness.	Choose... Enrollment Period Probationary Period Master Policy Experience Rating METs
e)	Period during which new employees can sign up for coverage under a group insurance plan.	Choose... Enrollment Period Probationary Period Master Policy Experience Rating METs
a) Master Policy b) Experience Rating c) METs d) Probationary Period e) Enrollment Period CONGRATULATIONS on completing Lesson 6. Now complete Florida study manual Unit 10 Questions for Review.