Under California Insurance Code Section 10209, when an employee's group life coverage terminates, the employee has the right to convert to an individual policy within:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The conversion right under CIC Section 10209 allows an insured employee whose group coverage terminates to convert to an individual life policy by applying within 31 days of termination. The conversion is available without evidence of insurability, in an amount equal to the group protection, and must be in any individual form the insurer customarily issues other than term insurance. This guarantees the employee continued coverage regardless of health, which is the core purpose of the right. The conversion right protects employees who lose group coverage through no fault of their own, such as upon a job change or retirement, ensuring they can continue life protection without proving insurability.
Why the other options are wrong
- B) The 60-day figure appears in the statute only as the outer limit of the extended conversion window that applies after late notice, not as the standard conversion period. The basic right runs for 31 days.
- C) Conversion is granted without evidence of insurability and may not be in the form of term insurance. The converting employee receives an individual permanent policy in the amount of the group coverage.
- D) The 15-day figure is the advance notice period before the conversion right expires, not the conversion period itself. Missing that notice simply extends the employee's deadline; it does not shrink the 31-day right.
Memory hook
31 days, no health questions, no term policies, same face amount. That is the group conversion deal.