Which of the following is NOT a characteristic of a Group Life Insurance Plan?

• A. Individual underwriting
• B. Coverage based on group characteristics
• C. Premiums typically paid by the employer
• D. Certificates of coverage issued to employees

Answer: (A)

In group life insurance, underwriting is done on the group as a whole rather than for each individual member. That means the insurer bases eligibility and premium pricing on the characteristics of the entire group (size, average age, employee class, etc.) rather than reviewing each person’s medical history. Because of this group-based approach, individual underwriting isn’t a typical feature of a group plan.

That’s why the statement describing individual underwriting isn’t a characteristic of a group life plan. The other elements fit naturally: coverage is determined by group characteristics (who is in the group and what class they’re in), premiums are usually paid by the employer, and employees receive certificates of coverage as proof of their coverage under the master policy.