PSI Ohio Insurance Practice Exam

A group conversion option may be used in all the following instances EXCEPT?

1. Life-changing event, such as marriage, divorce, or childbirth

2. Termination of employment

3. Reduction in work hours

4. Retirement from a company

The correct answer is: Life-changing event, such as marriage, divorce, or childbirth

A group conversion option allows individuals covered by a group insurance policy to convert their group coverage to an individual policy under certain circumstances without having to provide evidence of insurability. The correct choice indicates that life-changing events such as marriage, divorce, or childbirth are generally not valid instances for utilizing a group conversion option. In the context of insurance policies, life-changing events might impact family status or the necessity for additional coverage, but they do not typically trigger the right to convert group insurance to individual insurance. The group conversion option is specifically designed to address situations that result in the loss of coverage, such as the termination of employment, reduction in work hours, or retirement. These events directly affect the individual's group insurance status and grant them the opportunity to maintain insurance coverage by converting to an individual plan, which is why they are valid instances for exercising this option.