New York Insurance Exam Practice Question
Which of the following is a characteristic of group life insurance?
Correct Answer: C
Rationale: Group life insurance is characterized by coverage that is tied to employment or membership. This means that individuals are covered as part of a larger group, typically through their employer or an organization, rather than obtaining individual policies.
Option A is incorrect because group life insurance generally does not require individual underwriting for each member; instead, it often involves simplified underwriting processes.
Option B is misleading; group policies usually have lower premiums compared to individual policies due to the risk being spread across many members.
Option D is also incorrect, as many group life insurance plans offer conversion options, allowing members to convert to individual policies upon leaving the group.
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