Nikki, age 62, is a graphic designer at BlueJeans Inc. in Vancouver, British Columbia. Her base salary
Question:
Nikki, age 62, is a graphic designer at BlueJeans Inc. in Vancouver, British Columbia. Her base salary is $100,000 and she is a member of the company benefits plan, offered through ABC Insurance. The group plan includes a basic life insurance benefit of two times her salary. She has just decided to quit her job at BlueJeans and become a freelance graphic designer. When Nikki asks you whether she can convert her group insurance to individual insurance, which of the following is the CORRECT response that you should provide her?
a)Nikki is not eligible to convert the group coverage to individual coverage after age 60.
b)The maximum amount that Nikki can convert to an individual policy is $100,000.
c)Nikki must convert to individual coverage within 60 days of leaving the BlueJeans group plan.
d)Nikki can convert her group coverage to individual coverage without proof of insurability.
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper