Question

Lorraine's position has been terminated, and she is interested in converting her group life coverage to an individual policy. In the process, she will find all of the following to be TRUE, except:

A. The premium will be higher than the group premium
B. She has 31 days of eligibility to convert to the private plan without having to prove insurability
C. She will be converting her group term benefit to an individual term benefit
D. If she waits until the eligibility period has closed, the insurer may require evidence of insurability to reduce adverse selection

Answer 1

When converting group life coverage to an individual policy, the premium may be higher, there is a 31-day eligibility period, and the term benefit may change. The incorrect statement is about the insurer requiring evidence of insurability if the eligibility period has closed.

Step-by-step explanation:

When Lorraine converts her group life coverage to an individual policy, she will find all of the following to be TRUE, except:

A. The premium will be higher than the group premium

B. She has 31 days of eligibility to convert to the private plan without having to prove insurability

C. She will be converting her group term benefit to an individual term benefit

D. If she waits until the eligibility period has closed, the insurer may require evidence of insurability to reduce adverse selection

So, the correct answer is Option D.