Retirement and Other Insurance Concepts
If a group life insurance master policy is TERMINATED by the employer, what conversion right do employees covered for at least 5 years possess under TIC § 1131.110?
Answer and explanation
Answer: A. TIC § 1131.110 limits conversion rights upon master policy termination for 5-year insureds to lesser of group amount or $10k.Source: Texas Insurance Code Chapter 1131 — § 1131.110, Conversion on Policy Termination
More retirement and other insurance concepts questions
- Which of these is a cash need rather than a continuing income need in a personal needs analysis?
- Who makes contributions to a Simplified Employee Pension (SEP) IRA plan, and how are they taxed?
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- Why do insurers generally require a higher participation percentage in a contributory group life plan than in a noncontributory plan?
- A business owner buys a key-person life policy on a vital executive. Three years later, the executive resigns. If the executive dies 5 years after resigning while the business maintains the policy, who receives the death benefit?
- A client wants survivors to receive income for thirty years and does not mind if the fund is exhausted at the end. Which approach fits?
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