Connecticut Life Producer Practice exam

If an employee dies during the conversion period, what is the primary factor in determining the claim payout?

1. The insured's age at death.

2. The terms of the group policy.

3. The amount of premiums paid.

4. The type of individual policy selected.

The correct answer is: The terms of the group policy.

The primary factor in determining the claim payout if an employee dies during the conversion period is the terms of the group policy. During the conversion period, an employee transitioning from a group insurance plan to an individual policy has specific rights and coverage based on the group policy’s provisions. These provisions outline the conditions under which coverage is maintained and how claims are handled, especially in cases of death. The group policy will typically define the benefits available to beneficiaries in the event of the insured's death, regardless of when the conversion takes place or what individual policy might be selected later. Other factors, such as the insured's age at death, the amount of premiums paid, or the type of individual policy selected, may influence aspects of coverage or payout in broader contexts but do not take precedence during the specific scenario of a claim arising while the insured is still covered under the group policy’s terms. The critical detail here is that the group's terms govern the situation at hand, determining how the payout is managed and what benefits are applied in the event of an employee's death during the conversion period.