Question

When does coverage typically cease in a group insurance scheme?

a.

When the employee reaches a certain age or retires.

b.

When the employer fails to pay the due premium within the grace period.

c.

When the employee is absent from work due to illness for an extended period.

d.

When the employee terminates employment with the company.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).When the employee terminates employment with the company. Explanation:Coverage typically ceases in a group insurance scheme when the employee terminates employment with the company. This can occur due to various reasons, such as resignation, termination, or retirement. When an employee leaves the company, their eligibility for insurance coverage under the group scheme ends, and they no longer receive the benefits provided by the policy. It's important for both the insurer and the employer to clarify the conditions under which coverage ceases to avoid any ambiguity or disputes regarding insurance benefits.

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Q. When does coverage typically cease in a group insurance scheme?
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