Life Insurance Policies
What is the function of a probationary period in a group life plan?
Answer and explanation
Answer: B. The probationary period sets how long a new employee must serve before becoming eligible, which reduces administration for short-service staff. The separate eligibility period is the window in which an eligible member must enrol before evidence is required.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, group eligibility and probationary period
More life insurance policies questions
- A client has a lump sum from an inheritance and wants to leave the largest possible sum to heirs, with no further payments.
- A client holds employer-provided level term cover and asks whether personal term insurance is still needed.
- A client wants cover that will still be in force at age ninety and a value that can be reached in the meantime. Which is indicated?
- A client wants flexible premiums and an adjustable death benefit, but also wants to place policy value in equity and bond portfolios and accepts that those values can rise or fall with market performance. Which explanation best distinguishes the product from non-variable universal life?
- A convertible term policy says conversion is available only under the policy's stated conversion provision. The owner asks for permanent coverage beyond the policy's allowed conversion amount without underwriting. What is the best response?
- A lender tells a borrower the loan will be approved only if credit life insurance is purchased from it. What is the objection?
621 New York questions like this one.
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