State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California's group life conversion privilege (CIC Section 10209), the converted individual policy must be:
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Answer & full 3-part explanation (select an option above, or peek)
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.