New Jersey Life Insurance Exam Practice Question
Which of the following is a characteristic of conversion from group to permanent life insurance?
Correct Answer: D
Rationale: When converting from group to permanent life insurance, a key characteristic is that conversion must be applied for within 1 month of termination (Option D). This time limit ensures that individuals maintain coverage without undergoing new underwriting.
Option A is incorrect because premiums for the new policy are based on the individual's age at the time of conversion, not when first covered. Option B is also wrong, as conversion can be to permanent insurance, not limited to term. Lastly, Option C is misleading; typically, proof of insurability is not required for conversion, making it an accessible option for policyholders.
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