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 50% of the group amount as a compromise
b.Refuse the claim because no individual policy was issued
c.Pay the group amount as if conversion had already taken place, because death occurred within the 31-day conversion window
d.Pay only the unearned premium back to the estate
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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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)