CEBS GBA 2 Life Insurance Exam Questions and Answers

CEBS GBA 2 Life Insurance Exam Questions and Answers list the death benefit tips provided via employee benefits - Answer-1 group term life 2 group dependent life 3 group AD&D insurance 4 group travel accident insurance 5 joint and survivor annuity benefits under retirement plans 6 preretirement annuity benefits 7 supplemental/optional life ins for employees and dependents what law mandates that survivor benefits to spouses? - Answer-ERISA and REA What is REA, retirement equity act of 1984 - Answer-provides for a preretirement survivor annuity under pension plans for surviving spouses of vested employees who die in active service ans who were not yet eligible for early retirement how does the group mechanism effect premiums - Answer-premiums are subject to experience ratings. ratings can be prospective or retro the premiums for larger groups are influenced by their own loss history. may even qualify for a credit if losses have been low how does the group mechanism effect risk - Answer-group selection is used and the entire group can be insured without medical exam or other evidence of indiv insurability. how does the group mechanism effect the economies of administration - Answeradministrative effeciencies are achieved through payroll deductions or other centralized functions. how does the group mechanism effect the master contract - Answer-insured indiv receive a group certificate of coverage as proof. the employees receive a SPD. the plan may last long beyond the lifetime of any one person. any group life contrat can generally be cancelled by the employer or plan sponsor or by the ins carrier about how many group life policies are in force? - Answer-46% of all life policies in force. value at $8.7 trillion name the 4 things to consider in a schedule of benefits - Answer-1 employees needs 2 overal cost 3 the nondiscrimination requirment of the law 4 employees ability to pay if the plan is contributory what the the advantages to noncontributory plans - Answer-1 all employees are insured 2 section 125 plan 3 simple administration 4 economy of installation (all employees are in...easy set up) 5 greater control of plan advantages of contributory plans - Answer-1 larger benefits (liberal/ more $) 2 cover more employees as cost is shared between employer and the employee 3 employees have more say 4 more employee interest as they share cost why is it important for an employee to be able to assign group life ins - Answeremployee can remove the group life ins proceeds from his or her gross estate for federal estate tax purposes. assignment coveys all inciddents of ownership coversion privilege - Answer-an employee may convert group term ins to an indiv permanent life ins policy if the employees coverage ceases due to termination of employment. termination of membership in a classification that was once eligible or he retires 31 day continuation of protection - Answer-extra days of protection while looking at the conversion privilege or waiting for coverage to start waiver of premium provision for group life - Answer-the life insurance remains in force if the employee is under a certain age (ie: 60) or is totally disabled or the total disability is continuous until death or there is proof of total and continuous disability demonstrated every 12 months list the disability benefit provisions - Answer-1 waiver of premium provision 2 disability income 3 extended death benefit