AD Banker Comprehensive Practice Exam

Upon leaving his place of employment, what option does George have for converting his group policy?

1. Convert to permanent insurance with proof of insurability

2. Continue his current coverage with no changes

3. Convert to an individual term insurance plan

4. Convert to permanent insurance without proof of insurability

The correct answer is: Convert to permanent insurance without proof of insurability

When an individual leaves their employment, they are often given the option to convert their group life insurance policy into an individual policy. Most group life insurance plans include a conversion privilege, which allows the insured person to obtain an individual policy without the need for proof of insurability, meaning they will not have to provide evidence of good health or go through medical underwriting. This provision is particularly valuable because it protects individuals who may have developed health issues since they first obtained coverage through their group plan. They might not qualify for individual insurance otherwise. Hence, being able to convert to permanent insurance without proof of insurability is an essential benefit as it ensures continuity of coverage despite changes in the insured's health status. The other options do not reflect the standard provisions of group life insurance conversion rights. Continuing current coverage with no changes usually isn't an option since once employment ends, the group policy typically terminates. Converting to a term insurance plan does not align with how many group policies operate; these policies more commonly allow for conversion to permanent insurance. Lastly, converting to permanent insurance with proof of insurability is not standard practice in this context, as the primary benefit of conversion is to bypass that requirement. Therefore, the option to convert to permanent insurance without proof of