Florida Life and Health Insurance License Practice Test

Which feature of a group Term Life policy enables an individual to leave the group and continue their insurance without providing evidence of insurability?

1. The conversion privilege

2. The renewable option

3. The transferable option

4. The extension privilege

The correct answer is: The conversion privilege

A group Term Life policy typically covers a group of people under a single policy, such as employees of a company or members of an organization. The conversion privilege allows an individual covered under this policy to leave the group and continue their insurance without providing evidence of insurability, meaning they do not need to undergo a medical exam or provide other proof of their health status. This privilege is valuable because it allows individuals to maintain their insurance coverage even if they leave the group for any reason, such as leaving their job or organization. The other options are incorrect because they do not offer this same flexibility. The renewable option allows an individual to renew their coverage at the end of the policy term, but evidence of insurability may be required. The transferable option allows an individual to transfer their coverage to a new group, but evidence of insurability may also be required. The extension privilege allows an individual