Colorado Life Producer License Practice Test

To qualify for a conversion from a group life policy to an individual policy of the same coverage, how long must the individual have been insured under the group policy?

1. 3 years

2. 5 years

3. 1 year

4. 2 years

The correct answer is: 5 years

In the context of converting a group life policy to an individual policy, the correct duration that an individual must be insured under the group policy is typically five years. This requirement is established to ensure that the insured has maintained continuous coverage under the group plan, demonstrating a commitment to maintaining health and stability over that period. After five years, individuals usually have sufficient experience as members of the group plan to qualify for a conversion without needing to undergo medical underwriting. This is particularly important as group policies often provide a level of coverage without the same underwriting requirements that individual policies entail, thus protecting the insured from potential declines in insurability due to health changes that could occur after leaving a group policy. No lesser duration, such as one, two, or three years, typically meets the standards set for conversion, which is why five years is the correct answer in this scenario. Understanding this requirement is essential for individuals to know their rights and options when transitioning from group insurance to individual insurance coverage.