Exam (elaborations)
CEBS GBA 2: Life Insurance Exam Questions and Answers A+ Graded
CEBS GBA 2: Life Insurance Exam Questions and Answers A+ Graded
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CEBS GBA 2: Life Insurance ExamQuestions and Answers A+
Graded
list the death benefit typs provided via employee benefits - -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? - -ERISA and REA
-What is REA, retirement equity act of 1984 - -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 - -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 - -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 - -
administrative effeciencies are achieved through payroll deductions or other
centralized functions.
-how does the group mechanism effect the master contract - -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? - -46% of all life policies in
force. value at $8.7 trillion
, -name the 4 things to consider in a schedule of benefits - -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 - -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 - -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 - -
employee 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 - -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 - -extra days of protection while looking
at the conversion privilege or waiting for coverage to start
-waiver of premium provision for group life - -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 - -1 waiver of premium provision
2 disability income
3 extended death benefit
-accelerated benefits - -plans will pay for all or part of the dealth benefit if a
patient can prove that he or she has a terminal illness
-ADEA- age discrimination in employment act of 1967 and ammendments -
-removed the age 70 ceiling on active employment. clarified the Older
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