Administration of Group Insurance Differs from Individual Insurance Because

question 13

Multiple Choice

Administration of group insurance differs from individual insurance because:

• A)the risks involved are different.
• B)each employee in a group insurance contract receives a master contract.
• C)the employer of a large group can be responsible for the record keeping ordinarily done by the insurer.
• D)group insurance does not involve the risk of adverse selection.
• E)employers in a group insurance contract receive a certificate of insurance in recognition to the insurance provided to all or most of its employees.

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Definitions:

Specific Asset

An identifiable and tangible asset owned by a company, often critical to its operations or unique in nature, usually with specific investment criteria.

Swap Contract

A swap contract is a financial derivative agreement between two parties to exchange sequences of cash flows for a set period of time.

Specified Cash Flows

Designated or pre-determined amounts of cash inflow or outflow expected to occur on specific dates in the future.

Specified Intervals

Predetermined or agreed periods at which certain actions are taken or conditions are reviewed, often used in finance with payments or interest calculations.