Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 8 review
| Blanket health policies | Issued to cover a group that may be exposed to the same risks, but whose composition is continually changing. |
| Certificate of insurance | This is a document issued by an insurance company or broker that verifies insurance coverage granted to individuals under specific conditions |
| Contributory plan | This is a group insurance plan issued to an employer under which both the employer and employees contribute to the plan’s cost |
| Conversion privilege | Before an original group insurance policy expires, this privilege enables the policy owner to convert the expiring group coverage to an individual whole life policy. |
| Credit policies | These policies are designed to help the insured pay off a loan in the event the insured passes away. |
| Franchise insurance | This is a life or health insurance plan that covers groups of individuals with uniform policies though the benefits may vary. |
| What are franchise insurance policies typically for? | General written for groups that are too small to qualify for regular group coverage |
| Master policy | This policy is issued to the employer under a group plan and contains all the insuring clauses that define employee benefits. |
| noncontributory plan | this is an employee benefit plan under which the employer bears the full cost of the employees’ benefits |
| Persistency | The percentage of an insurer’s policies that remain in force after a specified period |
| When is group insurance typically provided? | For Employees from employers |
| In group insurance what do employees receive? | Certificates of insurance |
| Certificate Holder | The covered employee or plan participant |
| policy owner | the employer or group sponsor who holds the master policy |
| In contributory plans employees must approve what? | an automatic payroll deduction |
| noncontributory plans help insurers avoid what? | adverse selection |
| When underwriting a group policy what should you focus on | Characteristics of the group |
| Law of large numbers | A statistical principle that allows insurers to predict losses more accurately with larger groups |
| when must conversion occur? | 31 days following termination |
| What happens if there is a death during the conversion period? | payment under the group policy |
| when conversion what are premiums based off? | the insured’s attained age at conversion |
| group credit life insurance | pays off the loan balance if a borrower dies before the loan is repaid |
| blanket life insurance | Covers groups exposed to the same hazard |
| Retired lives reserve | provides continuing life insurance protection after retirement |
| In retired lives reserve | employer contributions are tax deductible |
| SGLI | automatic coverage to full time members of the armed serivces |
| FSGLI | Covers spouses and children of service members insured under SGLI |
| VGLI | Conversion of SGLI after separation from service, no proof of insurablility required |
| FEGLI | Provides group term life for federal employees/civil service workers |
| FEGLI basic coverage | equals annual salary plus 2,000 |
| Employer paid premiums are tax deductible as what? | business expense |
| the first 50,000 of employer provided coverage is what? | tax exempt |
| conversion always changes temp to what? | permanent protection |
| What percentage of employees must participate in contributory plans? | 75% |
| What percentage of employees must participate in noncontributory plans? | 100% |
| what does SGLI stand for | Servicemembers’ group life insurance |
| what does FSGLI | Family serivcemembers’ group life insurance |
| what does VGLI stand for | veterans’ group life insurance |
| what does FEGLI | federal employees group life insurance |
Created by:
Lupe12