Life Insurance Basics
What ordinarily distinguishes group life insurance from individual coverage?
Answer and explanation
Answer: D. Group insurance underwrites the group rather than each person, issuing a master contract to the sponsor and certificates to covered members. Group term builds no cash value, insurer form is irrelevant, and a conversion privilege is a standard feature.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, group versus individual
More life insurance basics questions
- A variable whole life owner reallocates policy value among available stock and bond choices. Which account description should the producer use?
- A young professional with modest savings buys a large policy. Which personal use does that serve?
- An adverse underwriting decision rests on an HIV related test result. What does section 2611 require of the insurer?
- An advertisement describes a life policy chiefly as a savings and investment plan. Why is that a problem?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
- An applicant believes the personal information an insurer holds is inaccurate. What recourse is provided?
621 New York questions like this one.
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