Chapter 5 Group Life Insurance

Front 1

Non-contributory

Back 1

an employee benefit plan under which of the employer bears the full cost of the employees benefits; in most states, the plan must ensure one hundred percent of eligible employees.

Front 2

Contributory

Back 2

a group insurance plan issued to an employer under which both of the employer and employees contribute to the cost of the plan. Generally, 75% of the eligible employees must be insured in most States.

Front 3

Certificate of Insurance

Back 3

a document issued by an insurance company/broker that is used to verify the existence of insurance coverage under specific conditions granted to listed individuals. With group Insurance, the group (typically employer) is the policy owner and maintains a master policy. The insured's (typically employs) receive a certificate of Insurance in lieu of a policy

Front 4

Master policy

Back 4

Is issued to the employer under a group plan; contains all the insuring clauses defining employee benefits.individual employees participating in the group plan receive individual certificates the outline highlights of the coverage.

Front 5

Conversion privilege

Back 5

allows a policyowner, before in original insurance policy expires, to elect to have a new policy issue that we'll continue the insurance coverage. Conversion may be affected at attained age (premiums based on the age attained at the time of conversion) or at original age (premiums paid on age at time of original issue).conversion is a common privilege for a term life insurance and all group Insurance. The insured does not have to prove insurability when converting a policy.

Front 6

Franchise insurance

Back 6

a life or health insurance plan for covering groups of persons with individual policies uniform in provisions, although perhaps different and benefits. Solicitation usually takes place in an employer's business with the employer's consent. Generally written for groups too small to qualify for regular group insurance coverage. Maybe called wholesale Insurance when the policy is life insurance.

Front 7

Credit policies

Back 7

are designed help the insured pay off a loan in the event they are disabled due to an accident or sickness or in the event they die. If the insured becomes disabled, the policy provides for monthly benefit payments equal to the monthly loan payments due. If the insured dies the policy will pay a lump-sum to the creditor to pay off the loan. Credit policies typically cannot exceed the amount of the loan as that is the only amount the creditor has insurable interest in.

Front 8

Blanket health policies

Back 8

are issued to cover a group who may be exposed to the same risk, but the compensation of the group (the individuals within the group) are constantly changing.a blanket health plan may be issued to an airline or a bus company to cover its passengers or to a school to cover its students. No certificates of coverage are issued in a blanket health plan, as compared to group Insurance.