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Flashcards in Group Insurance Market Deck (14):
1

To be eligible for a group insurance plan, the group must be:
A
Formed for reducing the cost of insurance
B
Approved by the Commissioner of Insurance
C
Formed for procuring insurance
D
A natural group

D
A natural group

2

An employee who becomes entitled under the terms of the group policy to have an individual policy issued without evidence of insurability must:
A
Document the need for coverage
B
File for unemployment
C
Request the coverage within 90 days
D
Submit an application along with the initial premium

D
Submit an application along with the initial premium

3

Social Security pays an eligible surviving spouse (or minor child) a one-time benefit upon the death of a covered worker. Which of the following is the amount of that benefit?
A
$255
B
$250
C
$355
D
$350

A
$255

4

To help protect against experiencing immediate claims, group plans have a(n) _______ period set up by the group sponsor.
A
Probationary
B
Elimination
C
Conversion
D
Open enrollment

A
Probationary

5

California law permits group insurers to offer coverage for up to 100% of the employee's basic coverage amount for a spouse and all children from birth until age:
A
21
B
25
C
19
D
26

D
26

6

The premium for optional dependent group insurance can be payable by:
A
The employee only
B
Both the employee and employer must contribute
C
The employer only
D
The employer, the employee, or both

D
The employer, the employee, or both

7

The arrangement under a Buy-Sell Agreement in which each party purchases insurance on the life of his/her partner(s) is called a:
A
Entity Purchase Plan
B
Deferred Compensation
C
Cross Purchase Plan
D
Split-Dollar Plan

C
Cross Purchase Plan

8

Under an Entity Purchase Plan form of a Buy-Sell Agreement, the business is all of the following, except:
A
Insured
B
Policyholder
C
Beneficiary
D
Premium payor

A
Insured

9

As specified by the California Insurance Code, the validity of a group policy cannot be contested, except for nonpayment of premiums, after it has been in force for:
A
18 months
B
9 months
C
1 year
D
2 years

D
2 years

10

The Social Security Death Benefit is payable to the ____________.
A
The named beneficiary
B
The estate of the insured
C
The surviving spouse
D
The next of kin

C
The surviving spouse

11

Every group policy containing a life insurance benefit must contain a reasonable extension of benefits upon discontinuance of the policy for employees who, while insured under the policy, become:
A
Partially disabled
B
Laid-off
C
Totally disabled
D
Retired

C
Totally disabled

12

In order for a worker to be qualified for all of the benefits available from social security how many credits must be earned?
A
30 credits
B
6 credits in the last 13 quarters
C
1 credit for each year of work between age 20 and age 40
D
40 credits

D
40 credits

13

A primary purpose of key person life insurance is to do which of these?
A
Provide the family of the deceased employee with up to ten years of the employee's lost future
B
Provide the business with money to recruit and train a replacement employee
C
Provide the business with money to pay vested retirement benefits to the heirs of the employee as a lump sum
D
Protect the business against the death of any employee earning at least $50,000 per year

B
Provide the business with money to recruit and train a replacement employee

14

When a group insurance plan is identified as contributory, it means all of the following, EXCEPT___________.
A
Employees pay a portion of the cost of their benefit
B
Employers must enroll 100% of eligible employees
C
Employee must be eligible to participate
D
Employers are responsible for collecting the premiums employees pay

B
Employers must enroll 100% of eligible employees