What is the minimum number of persons that can be covered by a group insurance plan quizlet?
All of the following groups are eligible for group insurance EXCEPT Show
groups that exist solely in order to purchase insurance Explanation Which of the following statements regarding group insurance is INCORRECT? Group insurance plans sponsored by a business are sometimes referred to as employer group plans. Explanation What is credit life insurance? Insurance that covers a debtor's life and will help provide funds to pay off a loan if the debtor dies before the loan is repaid Explanation Which of the following statements with regard to group term
life insurance is CORRECT? Most group term policies contain a conversion privilege, allowing insureds to convert the coverage to an individual plan if they leave the group. Explanation The period of time a new employee has to wait before she may enroll in a group life insurance plan is called a probationary period Explanation Jerome's Jazz and Juice Bar offers group life insurance on a contributory basis. How many of Jerome's employees must participate in the plan? 0.75 Explanation If a company has 1,000 employees who are eligible for a contributory group health insurance program, how many would be required to participate? 750 Explanation Under a group life insurance plan, each employee has the right to name their beneficiary Explanation Which of the following statements comparing group and individual life insurance is NOT true? Individual insurance is generally available at lower rates than group insurance. Explanation All of the following groups would be eligible for group insurance EXCEPT a family of 10 Explanation Which of the following types of life insurance covers the life of a debtor in connection with a specific loan? Credit life Explanation If an employer pays the entire premium for a group life insurance policy, the policy must insure what percentage of eligible employees? 1 Explanation In writing group insurance, insurance companies use all of the following underwriting criteria EXCEPT the individuals' medical histories Explanation Who is most likely to offer group credit life
insurance? A car dealership Explanation A trust that is formed by a group of smaller
employers in the same or similar industries is known as a MET Explanation The individuals who are insured under a group life contract are given which of the following as evidence of their coverage? Certificates of insurance Explanation Which of the following factors is the most pronounced difference between group and
individual insurance plans? Underwriting process Explanation Shiyuan, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? It is paid under the old group plan. Explanation Generally speaking, how many
days does a certificate holder have to convert to an individual policy? 31 Explanation With group life insurance policies, standard provisions that apply
to employees who join during the open enrollment period typically include all of the following EXCEPT providing proof of insurability Explanation If an employer group plan is contributory, most states require that at least 75% of the eligible employees participate Explanation When an employer establishes a group insurance plan, what evidence of insurance may each participating employee receive? A certificate of insurance Explanation One reason a plan may require employees to sign up within 31 days after the probationary period is to avoid adverse selection Explanation What minimum percentage of eligible employees must be insured under a noncontributory group life policy? 1 Explanation Which of the following is least likely to sponsor group credit life insurance plans? Local grocery stores Explanation In which of the following situations might Gabriela be eligible for group credit
insurance? She recently purchased a car and financed it through the dealership. Explanation All of the following are likely to appear on a group participant's certificate of insurance EXCEPT a physician's address Explanation What is one of the advantages of purchasing an individual credit life
insurance policy? The policy can continue in force even after the loan has been paid off. Explanation Which of the following is LEAST likely to appear on a group insurance application? medical questions Explanation What is credit life insurance? Policies that cover payment of a debt if the debtor dies Explanation When credit life or health insurance is required to secure a debt, the
debtor must have the option of getting required coverage from existing coverage or from any authorized insurer Explanation Which of the following statements regarding both individual credit life insurance and group credit life insurance is NOT correct? Both policies are typically medically underwritten. Explanation The premium cost for group insurance is generally based on experience rating Explanation Which of the following statements regarding group life insurance is FALSE? The converted policy must be a term insurance policy, not permanent insurance. Explanation Individual certificates issued to all individuals insured under an insurance policy must include all of the following information EXCEPT the premium amount Explanation Which of the following statements about a contributory group life insurance plan is CORRECT? The employees must pay for part of the cost of the insurance program. Explanation All of the following are characteristics of group life insurance EXCEPT each insured in the group receives a policy Explanation Which of the following is NOT an eligible group to obtain group life insurance? A neighborhood investment club Explanation Which of the following statements regarding employee eligibility for group benefits is TRUE? Employees must be actively at work Explanation If a group life insurance plan is contributory, what minimum percentage of eligible employees must participate? 0.75 Explanation In group insurance plans, if the plan is noncontributory, the employer pays the entire premium Explanation A group life insurance plan participant who has been covered under the plan for 4 years terminates employment on October 1.
On October 22 she dies without having made a decision whether to convert her group coverage to an individual policy. What action will the insurer take? Assume that the deceased employee would have elected the conversion option and pay the death benefit without regard for the deceased employee's insurability prior to death Explanation Which of the following statements about the group conversion option is NOT true? The option guarantees the member that coverage will continue for 60 days. Explanation Which of the
following groups is least likely to be eligible for coverage through a group health plan? A group of neighbors who wish to insure themselves and their families Explanation A master policy is issued to the sponsoring group and the policyholder is the employer Explanation If an employer pays all the premiums for a group life insurance policy, the policy must insure all eligible employees Explanation Madison, who is 27, is interested in
purchasing a car from the local dealership. What kind of insurance might be included when she finances her car? Credit life insurance Explanation All of the following types of groups are eligible for group life insurance EXCEPT a group of creditors Explanation Which of the following statements regarding group credit life insurance is NOT correct? Depending on the loan amount, evidence of insurability may be required. Explanation Which of the following statements regarding group health coverage is NOT correct? Both the policyowner and the insured receive a copy of the master policy. Explanation Which of the following statements regarding conversion is TRUE? Premiums are based on the attained age at conversion. Explanation Typically, a contract for group life insurance is issued to the employer Explanation Group
life insurance plans in which employees contribute to the overall premium are called contributory Explanation Group life insurance policies include a probationary period requiring new employees to
wait a certain time before they can enroll in the plan. How long is the typical range for these probationary periods? 1 to 12 months Explanation A certificate holder will lose their coverage under a group life insurance plan due to any of the following EXCEPT the insurer increases the premium Explanation When indebtedness is discharged before the scheduled maturity date, credit insurance is terminated and a refund is paid to the insured Explanation Which of the following statements about group and individual life
insurance is CORRECT? Group plans involve experience rating, while individual policies require individual underwriting and evidence of insurability. Explanation Under a group life plan, eligible dependents of an insured employee could include all of the following EXCEPT the insured's in-laws Explanation A company has 1,200 eligible employees for its group life insurance program, and the company pays the total premium. How many employees must be insured to initiate the plan? 1,200 employees Explanation What is the minimum number of members required for a group life insurance policy in the state of Florida?Many states place minimum guidelines on the amount of participants required to be considered for group coverage (typically 50). Florida does not set such rules. There is no minimum number of members (lives) as long as the organization is one that is eligible for group life insurance in Florida.
What is a group plan for insurance?What Is a Group Health Plan? Group health plans are employer- or group-sponsored plans that provide healthcare to members and their families. The most common type of group health plan is group health insurance, which is health insurance extended to members, such as employees of a company or members of an organization.
What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida law?Typically, noncontributory plans require 100% employee participation; contributory plans usually require approximately 75% participation. (However, under Florida law there is no specific minimum percentage participation for employees covered by employee group health insurance.)
What is group insurance in USA?Group health insurance—sometimes called employer-based coverage—is a type of health insurance plan offered by an employer of a member organization. Members of a group health insurance plan usually receive coverage at a lower cost because the risk to the insurer is distributed across multiple members.
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