Question 4005 of 324 · Texas Life, Accident and Health Agent Exam

A group life certificate holder who leaves the employer generally has a conversion privilege that allows

Exactly one answer is correct.

Acontinuing the group term coverage at the same group rate indefinitely
Breceiving a refund of all premiums paid by the employer
Cconverting to a policy with a higher face amount than the group coverage, once the underwriting file is complete
Dbuying an individual permanent policy without evidence of insurability within a limited time

Show solution

Correct answer to question 4005

D: buying an individual permanent policy without evidence of insurability within a limited time

Explanation

The individual must apply and pay the first premium not later than the 31st day after employment or membership ends. The individual policy is issued without evidence of insurability, cannot be term insurance, and may not exceed the amount of insurance that ceased. The premium is the insurer's customary rate for the form, amount and class of risk.