Under CIC Section 10209, when an employee's group life insurance terminates and the employee applies to the insurer within 31 days for an individual policy, the individual policy that must be issued:

Why A is correct

CIC Section 10209 requires that within 31 days after group coverage terminates, the employee may convert to any individual life policy form customarily issued by the insurer other than term insurance, without producing evidence of insurability. The converted policy may not be term coverage. If the employee dies during the 31-day conversion window before the individual policy takes effect, the death benefit is paid as a claim under the group policy.

Why the other options are wrong

• B) The conversion policy expressly may not be term insurance under Section 10209.
• C) The statute permits any customary permanent form; it does not require variable universal life.
• D) Conversion is issued without evidence of insurability; that is one of its key protections.

Memory hook

Converted policy = permanent, no medical exam, 31-day window. Term is banned from the conversion menu.

Why A is correct

CIC Section 10209 requires that the policy issued on conversion be a form of life insurance that is not term insurance - typically whole life or another permanent plan. The purpose is to ensure that the converting employee gains coverage that remains in force without the risk that a term policy will expire or become unaffordable. The premium is based on the employee's attained age and the chosen permanent policy form, and no evidence of insurability is required. The converted policy may differ from the group certificate's form, but it must be permanent.

Why the other options are wrong

• B) Term coverage is expressly not allowed as the converted policy form under Section 10209.
• C) The converted policy need not match the group certificate's form. It must be a permanent individual policy.
• D) The employer's master contract is a group document. Conversion produces an individual policy, not a copy of the master contract.

Memory hook

Conversion equals permanent, never term; CIC 10209 says so.