Life Insurance Policies
An eligible employee declines the contributory plan at first, then applies to join two years later. What may the insurer require?
Answer and explanation
Answer: D. Late entrants are the classic selection risk, so a member who does not enrol during the eligibility window is ordinarily asked for evidence of insurability. Back premiums and a fresh probationary period are not the usual conditions.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, evidence of insurability in group
More life insurance policies questions
- Why do the rules on eligible sponsors insist that the group exist for a purpose other than insurance?
- Why does a limited payment whole life policy need testing against the modified endowment contract rules?
- Why does level term cost less than whole life for the same face amount at the same age?
- Why does New York limit the amount of insurance that may be written on the life of a minor?
- Why does survivorship life cost less than an individual policy of the same face amount on either insured?
- Why is group life insurance generally cheaper per unit than individual insurance?
621 New York questions like this one.
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