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Lesson 6 Quiz

The following quiz is provided for your information to help you measure your retention level on the material covered within this lesson. It is not graded. Only the final examination is graded.

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1
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.
CORRECTTRY AGAIN (Lesson 6.1)
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2

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.
CORRECTTRY AGAIN (Lesson 6.1)
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3

Group life insurance plans in which the employee contributes a portion of the premium is called a plan. Group life insurance plans in which the employer pays the entire premium is called a plan.


Word bank: Contributory, Noncontributory

Group life insurance plans in which the employee contributes a portion of the premium is called a Contributory plan. Group life insurance plans in which the employer pays the entire premium is called a Noncontributory plan.

Lesson 6.1.1Check your answer

4

Florida law does not set minimum guidelines on the amount of participants required to be considered for contributory group coverage.

a) True
b) False
CORRECTTRY AGAIN (Lesson 6.1.1)
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5
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
CORRECTTRY AGAIN (Lesson 6.3)
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6

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
CORRECTTRY AGAIN (Lesson 6.3)
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7
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.
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.
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.
a) Group Ordinary Plans

b) Group Paid-Up Plans

c) Group Universal Life Plans
Check your answer

8

Permanent Life insurance is another name for ________ Life insurance.

a) Term
b) Valued
c) Variable
d) Whole
CORRECTTRY AGAIN (Lesson 6.4.2)
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9

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
CORRECTTRY AGAIN (Lesson 6.4.2)
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10

All group insurance policies must be convertible.

a) True
b) False
CORRECTTRY AGAIN (Lesson 6.4.3)
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11

The Conversion Period for group life insurance is ______ days.

a) 14
b) 31
c) 45
d) 60
CORRECTTRY AGAIN (Lesson 6.4.3)
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12

Any death within the Conversion Period is covered.

a) True
b) False
CORRECTTRY AGAIN (Lesson 6.4.3)
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13

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
CORRECTTRY AGAIN (Lesson 6.4.3)
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14
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.
b) Temporary coverage of a specific hazard for a specific group.
c) Applies to the relationship between debtor groups and creditor groups.
a) Franchise Life

b) Blanket Life

c) Credit Life

(Lesson 6.5)
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15
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.
b) Review of the previous year's claims experience for a group insurance contract in order to establish premiums for the next period.
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.
d) Specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness.
e) Period during which new employees can sign up for coverage under a group insurance plan.
a) Master Policy

b) Experience Rating

c) METs

d) Probationary Period

e) Enrollment Period

CONGRATULATIONS on completing Lesson 6. Now complete Florida study manual Chapter 10 Questions for Review.
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