Question

In: Finance

Which of the following statements concerning the usual provisions for continuing protection under group term life...

Which of the following statements concerning the usual provisions for continuing protection under group term life insurance contracts is correct?

A. Most coverage may be converted if a master contract is terminated.

B. Coverage continues for 90 days after termination of employment.
C. An employee has up to one year after termination of employment to convert coverage.
D. Continuation of coverage under the waiver-of-premium provisions is contingent upon an employee's being totally disabled.

Solutions

Expert Solution

Correct statement is D: Continuation of coverage under the waiver-of-premium provisions is contingent upon an employee's being totally disabled.

After termination of employment normally employee has 31 days to decide conversion of contract and hence employee is covered for 31 days after termination of employment. So here B & C are incorrect.

If master contract terminated then conversion option is given to the only employee who are under the contract for longer period (generally five years) immediately preceding the date on which the coverage was terminated.So option A is not correct.

jeff jeffy answered 2 years ago
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