Florida 2-15 Life, Health and Variable Annuity AgentGeneral Knowledge of Life InsuranceMedium
An individual is covered under a group life insurance policy provided by their employer. If their employment is terminated, they have the right to convert their group coverage to an individual policy without evidence of insurability. What is the maximum period typically allowed for this conversion privilege after termination of employment?
- A31 days
- B15 days
- C60 days
- D90 days
Show answer & explanationAnswer & explanation
Correct answer: A. 31 days
Most group life insurance policies include a conversion privilege that allows an employee to convert their group coverage to an individual permanent policy, without evidence of insurability, within 31 days of employment termination. During this 31-day period, the employee remains covered under the group policy.
Why the other options are wrong
- B. 15 days is too short; the standard period is longer.
- C. 60 days is generally longer than the typical conversion period.
- D. 90 days is significantly longer than the standard conversion period.
Group Life Conversion Privilege
A provision in group life insurance that allows an employee to convert their group coverage to an individual permanent policy, without providing evidence of insurability, typically within 31 days of employment termination.
- Available upon employment termination
- No evidence of insurability required
- Must be converted to an individual permanent policy
- Standard period is 31 days
Memory trick: Group ends, individual begins within 31.