Question

1 point
group life insurance is typically issued without evidence of insurability provided that :
the employee pays the full premium
coverage exceeds $100,000
the employee enrolls during the eligibility period
the employer is the beneficiary
clear selection
1 point
which specialized policy is most commonly used in estate planning to pay estate taxes?
credit life
joint life
survivorship life
industrial life
clear selection
1 point
on a state exam, which life insurance policy type involves the most investment risk to the policy owner?
whole life

Explanation:

1. For group life insurance, enrolling during the eligibility period allows coverage without proof of insurability, as this period is designed to ensure a broad pool of healthy employees.
2. Survivorship life insurance (also called second-to-die insurance) pays out after both insured individuals pass, making it ideal for covering estate taxes which are due after the second spouse's death.
3. Variable life insurance (not fully shown but the correct option among standard choices) ties cash value to investment sub-accounts, so the policy owner bears all investment risk, unlike whole or universal life which have more guaranteed components.

Answer:

1. The employee enrolls during the eligibility period
2. Survivorship life
3. Variable life (standard correct answer for this question type, as it carries the highest investment risk for the policy owner)