Which of the Following Statements About Group Term Life Insurance

question 34

Multiple Choice

Which of the following statements about group term life insurance is true?

• A)It usually is written in the form of 5-year level term insurance.
• B)An employee who leaves the group can usually convert the coverage to an individual term life insurance policy.
• C)Many employers provide a reduced amount of coverage on retired employees.
• D)It represents only about 5 percent of the group life insurance in force.

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Definitions:

Direct Labor

Direct labor refers to the wages paid to employees who are directly involved in the production of goods or the provision of services.

Overhead

All indirect costs related to the production of goods or services, including utilities, rent, and salaries for support staff, not directly traceable to a product.

Conversion Cost

The combination of labor costs and overhead expenses associated with transforming raw materials into finished goods.

Equivalent Unit

A unit of production expressed in terms of the amount of materials, labor, or overhead necessary to complete one unit of production.