Group Life & AnnuitiesQuestion 121 of 315
An employee with group life coverage dies 10 days after leaving the job, having not yet applied for conversion. What is the insurer's obligation?
a.Pay the group amount as if conversion had already taken place, because death occurred within the 31-day conversion window
b.Refuse the claim because no individual policy was issued
c.Pay only the unearned premium back to the estate
d.Pay 50% of the group amount as a compromise
Explanation
Death during the 31-day conversion window after group coverage ends is paid as if the conversion had already been completed, even if no individual policy was actually issued. This is a statutory protection in California group life law.
Law Reference: Cal. Ins. Code §10209Practice all 315 questions free — no signup required.
Related questions on this topic
- During the accumulation phase of a non-qualified deferred annuity, how is the interest credited inside the contract treated for federal income tax purposes?
- Which of the following is NOT one of the eligible group categories for group life insurance in California?
- If the owner of a deferred annuity dies during the accumulation phase, before annuitization begins, who normally receives the contract's remaining value?
- Which statement BEST describes the difference between a 401(k) plan and a 403(b) plan?
- Under ERISA, an employee's own salary-deferral contributions to a 401(k) plan must vest:
- During the ACCUMULATION phase of a deferred annuity, which of the following best describes the contract's status?
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