Massachusetts Life Producer Practice Exam

Which statement about group life insurance is INCORRECT?

1. Each participant requires evidence of insurability

2. Coverage is typically provided without individual medical underwriting

3. Premiums can be paid entirely by the employer

4. Benefits are often based on salary levels

The correct answer is: Each participant requires evidence of insurability

In group life insurance, one of the defining features is that it typically does not require individual participants to provide evidence of insurability. This is largely because group policies are designed to provide coverage to all members of a group, such as employees of a company, without the need for each individual to undergo the same rigorous medical evaluations that would typically be required for individual life insurance policies. This approach simplifies the enrollment process and makes coverage more accessible. In contrast, options that state policies can be structured for premiums to be paid entirely by the employer, and that benefits often reflect salary levels, are correct and reflect common practices in group life insurance. The benefit structure helps ensure that the coverage is proportional to the income of employees, providing a safety net that aligns with their financial needs. Therefore, the statement requiring each participant to provide evidence of insurability stands out as the incorrect assertion regarding group life insurance.