LOMA 281 Module 4 | 174 Questions & Answers Solved 100% Correct!!

Group Insurance - A method of providing life or health insurance coverage for a group of people under one insurance contract. commonly provide: - life insurance, medical expense insurance, disability insurance, and dental insurance coverage Master group insurance contract - An insurance contract that insures a number of people. Group insured - An individual covered by a group insurance policy. Group policyholder - 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. Which of these people or companies is a party to the group insurance contract? (Choose all that apply.) a. Jerome Tate b. Able Life Insurance c. The Stetson Company - B & C- The Stetson Company and Able Life are the parties to the contract. Stetson purchased the contract for the benefit of its employees, and the contract names Stetson as the owner of the group policy. Jerome is insured by the contract, but he is not a party to it. requirements for a valid contract - - The parties to the contract must mutually agree to the contract's terms - The parties must have contractual capacity - The parties must exchange legally adequate consideration -The parties must enter into the contract for a lawful purpose Do you think Able Life and The Stetson Company (the parties to the group insurance contract) have to meet these same four basic requirements?a. Yes, the requirements generally are the same. b. No, the requirements are different. - a. The parties must meet the same requirements whether they are entering into a group contract or an individual contract. However, one difference between a group insurance contract versus an individual insurance contract has to do with the lawful purpose requirement. Group insurance contracts have no insurable interest requirement - Instead, a group contract meets the lawful purpose requirement because the policyholder buys the coverage for others and is unlikely to benefit from the death of the insureds. As a result, the group policyholder's interest in the contract doesn't present the same risk of creating a wagering agreement.