Life Insurance Policies
What purpose does a multiple employer trust serve as a group sponsor?
Answer and explanation
Answer: D. A multiple employer trust or welfare arrangement pools small employers, often in a common industry, so that together they qualify for group underwriting and pricing. The insurer still bears the risk, and group term builds no cash values to hold.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, multiple employer trust
More life insurance policies questions
- What does the floor in a fixed indexed life policy do?
- What does the owner of a level term policy receive if the policy reaches the end of its term without a claim?
- What does the survivor purchase option in a joint life policy commonly provide?
- What evidence of health must a member give to exercise the group conversion privilege?
- What external measure is commonly used to determine interest credits in indexed universal life?
- What form of insurance is group life cover usually written as?
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