Connecticut Life Producer Practice exam

What needs to happen for a death claim to be processed under a group policy after termination of employment?

1. The employee must have applied for an individual policy.

2. The event of death must occur within the conversion period.

3. The group policy must be renewed immediately.

4. The employer must approve the claim.

The correct answer is: The event of death must occur within the conversion period.

For a death claim to be processed under a group policy after termination of employment, it is essential that the event of death occurs within the conversion period. The conversion period is a specific timeframe following the termination of employment during which an individual covered by the group policy can convert their coverage to an individual policy without having to provide evidence of insurability. If the death occurs during this designated period, the claim can be successfully processed under the group policy, affirming the coverage that was previously in place. The other choices do not adequately address the conditions necessary for processing the claim after employment ends. While applying for an individual policy could be beneficial, it is not a prerequisite for processing a death claim under the group policy itself. Immediate renewal of the group policy may not be standard practice in all cases. Similarly, employer approval for the claim does not relate to the timing of the employee's death in relation to the conversion period, making it irrelevant for this specific scenario.