State RegulationsPA specificDifficulty 1/5
Which of the following is an eligible group for group life insurance coverage in Pennsylvania?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Pennsylvania's Group Life Insurance Policy Law (40 P.S. § 532 family) allows group life coverage to be written on defined groups of people with a common bond — the classic example being employees of a common employer covered under the employer's plan. The law's purpose is to insure genuine groups formed for purposes other than buying insurance, which is why coverage follows the group relationship rather than ad hoc gatherings or individually underwritten sales.
Why the other options are wrong
- A) A group formed merely to buy coverage for one event has no ongoing common bond of the kind the group life law recognizes.
- C) A single applicant with no group affiliation buys individual life insurance, which is underwritten and issued policy by policy.
- D) A family purchasing separately underwritten individual policies is making individual sales, not group coverage under the group life framework.
Memory hook
Group life rides on a real common bond — employer, union, association — never a cluster of strangers.