68. An insured dies during the conversion period of a group life policy. Which amount is payable to the beneficiary?
Answer: B
The face amount is payable to the beneficiary.
In the event of the insured's death during the conversion period of a group life policy, the full face amount of the policy is payable to the beneficiary without any deductions.
A) The face amount minus one month's premium
This option is incorrect because the beneficiary is entitled to receive the full face amount of the policy. There are no deductions for premiums owed at the time of death during the conversion period.
B) The face amount
This is the correct option, as it accurately reflects that the beneficiary receives the full face amount of the policy if the insured dies during the conversion period. The policy stipulates that the full benefit is payable without reductions.
C) The face amount minus a conversion fee
This option is incorrect because there is no conversion fee deducted from the face amount if the insured passes away during the conversion period. The beneficiary is entitled to the total face value.
D) 50 percent of the face amount
This option is incorrect as it suggests a reduced benefit, which is not applicable in this scenario. The beneficiary receives the full face amount, not a partial payment.
Conclusion
The correct answer is that the full face amount is payable to the beneficiary, as indicated by the terms of the group life policy during the conversion period. All other options incorrectly suggest deductions or partial payments that do not align with the policy's provisions. Understanding this ensures clarity about benefits entitled to beneficiaries under group life insurance policies.