Tennessee Insurance Practice Exam

The conversion privilege is a key feature that enables individuals to continue their life insurance coverage when they leave a group Term Life policy. This option allows insured members to convert their group coverage into an individual policy without having to provide evidence of insurability, meaning they do not need to undergo any medical underwriting or provide health information. This is particularly beneficial for individuals who may have developed health issues while covered under the group plan, as it ensures they can maintain insurance protection even after separating from the group.

Having this conversion privilege provides peace of mind and continuity of coverage, which can be vital for those who may face difficulties in obtaining new insurance in the future. Other options, while related to insurance and benefits, do not specifically address the continuation of coverage after leaving the group. For example, a waiver of premium generally relates to situations where the insured cannot pay due to certain conditions, whereas the portability option pertains to maintaining coverage in a different group context without converting to individual plans. Guaranteed renewability is a feature that allows policyholders to renew their policies regardless of health status but does not specifically enable continuation of group coverage after separation.