California Insurance License Exam Practice Test Practice Question
What is one difference between individual life insurance and group life insurance?
Correct Answer: B
Rationale: Group life insurance often utilizes experience rating, which adjusts premiums based on the claims history of the entire group. This collective assessment can lead to lower costs for members compared to individual policies.
Option A is incorrect as group life insurance typically has lower premiums due to the risk being spread across many individuals. Option C is misleading; individual life insurance generally has stricter medical requirements as it assesses each applicant's health individually. Option D is also incorrect; group insurance usually does not require individual evidence of insurability, simplifying the enrollment process for members.
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