Connecticut Life Producer Practice exam

What is indicated if a death claim is settled under the group policy during the conversion period?

1. The group policy coverage was still effective.

2. The individual policy was never activated.

3. The employee did not inform the insurer.

4. The employer failed to notify the insurance company.

The correct answer is: The group policy coverage was still effective.

The correct response is that the group policy coverage was still effective. During the conversion period, individuals who are part of a group policy, typically provided by an employer, have the option to convert their group coverage to an individual policy. This period usually occurs when an employee leaves the group or the group's coverage ends. If a death claim is settled under the group policy during this conversion period, it suggests that the group coverage was still active at the time of the individual's death. This indicates that the employee had not yet fully transitioned to an individual policy, and thus, the group policy was still providing benefits. In scenarios involving group insurance, conversion periods are crucial because they allow individuals to maintain some level of coverage while they navigate the process of acquiring individual insurance. The other choices do not accurately capture this relationship under the policies but rather center around other aspects that do not directly pertain to the situation of a death claim being settled during this specific time frame.