Loma 281 - Module 4 EXAM 100% ACCURATE!!
Group insurance - ANSWER Life or health insurance coverage for a group of people under one
insurance contract
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
Group insurance - ANSWER Life or health insurance coverage for a group of people under one
insurance contract
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
