LOMA 281 - Module 4 Questions and
Answers 2026
Group insurance -Correct Answer ✔-Life or health insurance coverage for a group
of people under one insurance contract
Master group insurance contract -Correct Answer ✔-An insurance contract that
insures a number of people
Group insured -Correct 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 -Correct 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 -Correct Answer ✔-A document that describes the
coverage that the group insurance contract provides and a group insured's rights
under the contract
Noncontributory plan -Correct 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 -Correct 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 -Correct 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 -Correct Answer ✔-A group insurance plan for which
the insurer is responsible for handling the administrative and recordkeeping
aspects of the plan
Probationary period -Correct 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
Eligibility period -Correct Answer ✔-A specified period of time, usually 31 days,
during which a new group member may enroll for group insurance coverage in a
contributory group insurance plan without evidence of insurability
Actively-at-work provision -Correct Answer ✔-A group insurance policy provision
which states that, in order to be eligible for coverage, an employee must be
actively at work—rather than ill or on leave—on the day the insurance coverage is
to take effect
Conversion privilege -Correct Answer ✔-Allows an eligible group insured to
convert their group life insurance coverage to an individual life policy without
evidence of insurability
Benefit schedule -Correct Answer ✔-A schedule that defines the amount of life
insurance the policy provides for each insured. The amount is based on either a
flat amount, salary, or job classification
Yearly renewable term insurance -Correct Answer ✔-A group plan of term life
insurance that provides coverage for one year and is renewable by the policy
owner at the end of the year
Group paid-up plan -Correct Answer ✔-Group plan of cash value life insurance
that combines paid-up whole life insurance with term life insurance to provide a
predetermined amount of coverage. Overtime, the amount of term insurance
Answers 2026
Group insurance -Correct Answer ✔-Life or health insurance coverage for a group
of people under one insurance contract
Master group insurance contract -Correct Answer ✔-An insurance contract that
insures a number of people
Group insured -Correct 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 -Correct 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 -Correct Answer ✔-A document that describes the
coverage that the group insurance contract provides and a group insured's rights
under the contract
Noncontributory plan -Correct 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 -Correct 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 -Correct 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 -Correct Answer ✔-A group insurance plan for which
the insurer is responsible for handling the administrative and recordkeeping
aspects of the plan
Probationary period -Correct 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
Eligibility period -Correct Answer ✔-A specified period of time, usually 31 days,
during which a new group member may enroll for group insurance coverage in a
contributory group insurance plan without evidence of insurability
Actively-at-work provision -Correct Answer ✔-A group insurance policy provision
which states that, in order to be eligible for coverage, an employee must be
actively at work—rather than ill or on leave—on the day the insurance coverage is
to take effect
Conversion privilege -Correct Answer ✔-Allows an eligible group insured to
convert their group life insurance coverage to an individual life policy without
evidence of insurability
Benefit schedule -Correct Answer ✔-A schedule that defines the amount of life
insurance the policy provides for each insured. The amount is based on either a
flat amount, salary, or job classification
Yearly renewable term insurance -Correct Answer ✔-A group plan of term life
insurance that provides coverage for one year and is renewable by the policy
owner at the end of the year
Group paid-up plan -Correct Answer ✔-Group plan of cash value life insurance
that combines paid-up whole life insurance with term life insurance to provide a
predetermined amount of coverage. Overtime, the amount of term insurance
