CARD Q036
A departing employee exercises a group life conversion right within the required period. What is the key protection typically provided?
- Eligible individual coverage without new evidence of insurability
- An automatic cash refund of all group premiums
- Permanent continuation of the employer’s contribution
- A guarantee of the same group premium
Eligible individual coverage without new evidence of insurability
Conversion can preserve coverage despite changed health. Available policy forms, amounts, deadlines, and premiums follow the contract and applicable law.
Why each choice is right or wrong
A. Eligible individual coverage without new evidence of insurability
Correct. Conversion can preserve coverage despite changed health. Available policy forms, amounts, deadlines, and premiums follow the contract and applicable law.
B. An automatic cash refund of all group premiums
Incorrect. Conversion is a coverage right, not a refund of all premiums.
C. Permanent continuation of the employer’s contribution
Incorrect. The employer does not thereby promise permanent contributions.
D. A guarantee of the same group premium
Incorrect. Individual conversion premiums can differ from the old group rate.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.