New York State Life Insurance Exam Questions Practice Question
Which of the following is TRUE concerning the conversion of group life insurance coverage to an individual policy?
Correct Answer: C
Rationale: When converting group life insurance to an individual policy, an insurer cannot require evidence of insurability, ensuring that individuals can obtain coverage without undergoing medical underwriting.
Option A is incorrect; conversion rights typically apply only when specific conditions, such as employment termination, occur, not whenever coverage ends.
Option B is misleading; a paid-up policy is not automatically granted, as the insured must actively seek conversion.
Option D is false; premiums for the new individual policy can differ significantly from group rates, reflecting individual risk factors and coverage terms.
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