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4 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated ? |
Those who have been insured under the plan for at least 5 years |
If the master contract is terminated, every individual who has been on the plan for at least 5 years. |
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All of the following are examples of third party ownership of a life insurance policy |
An insured borrows from a bank and makes a collateral assignment of a part of death benefit to secure a loan. |
A collateral assignment is the transfer of some or all of the death benefits of the policy to a creditor as cecurity for a loan, but dose not give the creditor the rights of ownership. In the event of the insured's death, the creditor would only be able to recover that portion of the policy's proceeds equal to the creditor's remaining interest in the loan. |
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Which of the folloowing is TRUE of a Qualified plan ? |
It has tax benefits for both Employers and Employees |
Aquilied plan is approved by the IRS, which then gives both employers and employees benefits in deductability of contribution and tax deferral of growith. |
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An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT ? |
The insured may choose to convert to term or permanate individual coverage. |
When group coverage is converted to an individual policy, the insurer will determin the type of coverage, usually perminate incurance. |
