Group Life & AnnuitiesQuestion 121 of 716
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, because the employee left the plan before any conversion application was filed
b.Refuse the claim because no individual conversion policy was ever issued to or paid for by the former employee
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, since group coverage ended on the employee's last day of work
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 §10209This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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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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PrepPass team · 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)