CLU Group Benefits and Employee Insurance

Question 1

Under a contributory group life insurance plan, what is the minimum employee participation requirement typically required by insurers?

Accepted Answer

75%

Answer

50%

Answer

90%

Answer

100%

Question 2

Which provision in a group life insurance policy allows employees to convert their coverage to an individual policy without evidence of insurability when they leave employment?

Accepted Answer

Conversion privilege

Answer

Waiver of premium provision

Answer

Portability provision

Answer

Continuation option

Question 3

A Section 79 plan governs the tax treatment of employer-provided group term life insurance. What is the monthly cost per $1,000 of coverage above $50,000 taxable to the employee?

Accepted Answer

IRS Table I rates

Answer

Actual premium cost

Answer

Employer's blended rate

Answer

COBRA rates

Question 4

What is the primary purpose of a Multiple Employer Welfare Arrangement (MEWA)?

Accepted Answer

To allow small employers to pool together to purchase employee benefits

Answer

To provide individual life insurance policies to union members

Answer

To reinsure large group life insurance contracts

Answer

To administer COBRA continuation coverage

Question 5

Under ERISA, what is the primary fiduciary duty of a plan administrator for a group life insurance plan?

Accepted Answer

Act solely in the interest of plan participants and beneficiaries

Answer

Maximize employer tax deductions

Answer

Minimize premium costs regardless of coverage

Answer

Follow employer directives at all times

Question 6

Which type of group life insurance provides coverage that remains level throughout the insured's working life and does not increase with salary?

Accepted Answer

Flat benefit plan

Answer

Earnings-based schedule

Answer

Position-based schedule

Answer

Unit benefit formula plan