New York State Life Insurance Exam Questions Practice Question
Which of the following is a characteristic of conversion from group to permanent life insurance?
Correct Answer: C
Rationale: When transitioning from group to permanent life insurance, it is essential to apply for the conversion within thirty-one days of termination, ensuring continuous coverage without the need for new underwriting.
Option A is incorrect because proof of insurability is typically not required in this conversion process, allowing individuals to secure coverage without additional health assessments.
Option B is misleading; conversion does not have to be to term insurance, as it can be to a permanent policy instead.
Option D is also incorrect; premiums for the new policy are based on the insured's current age, not the age at which they were first covered under the group policy.
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