LOMA 281 STUDY GUIDE TEST QUESTIONS AND CORRECT ANSWERS SUCCESS RESOURCE

LOMA 281 STUDY GUIDE TEST QUESTIONS
AND CORRECT ANSWERS SUCCESS
RESOURCE

●● Master group insurance contract
Answer: An insurance contract that insures a number of people


●● Group insured
Answer: Individual covered by a group policy but is not a party to the
group contract. The insured, rather than the policyholder, names the
beneficiary


●● Group policyholder
Answer: The person or organization that decides what types of group
insurance coverage to purchase for a specific group, negotiates the terms
of the group insurance contract, and purchases the group insurance
coverage


●● Certificate of insurance
Answer: A document that describes the coverage that the group
insurance contract provides and a group insured's rights under the
contract

, ●● Noncontributory plan
Answer: A group insurance plan where only the group policyholder pays
the entire premium for the coverage. 100% of members must participate
in this plan


●● Contributory plan
Answer: A group insurance plan where insured group members must pay
part or all of the premium for their coverage. Typically, at least 75% of
members must participate in this plan


●● Self-administered plan
Answer: A group insurance plan for which the group policyholder is
responsible for handling the administrative and recordkeeping aspects of
the plan


●● Insurer-administered plan
Answer: A group insurance plan for which the insurer is responsible for
handling the administrative and recordkeeping aspects of the plan


●● Probationary period
Answer: The length of time—typically, from one to six months—that a
new group member of a noncontributory plan must wait before
becoming eligible to enroll in the group insurance plan