PSI Ohio Insurance Practice Exam

The group conversion option is not allowed during which of the following times?

1. After leaving a group plan

2. Upon reaching retirement age

3. During the annual benefits enrollment period

4. Upon termination of employment

The correct answer is: During the annual benefits enrollment period

The group conversion option is a provision that allows members of a group insurance plan to convert their coverage to an individual policy upon leaving the group. However, this option is not available during specific times, particularly during the annual benefits enrollment period. During this enrollment period, individuals are typically given the opportunity to review and select their benefits for the upcoming year. Since group coverage is still in effect during this time, any conversions to individual plans can interfere with the established group policy and the options available to employees under that plan. This means that during the annual benefits enrollment period, individuals are expected to make selections from the available group options rather than converting their coverage to an individual policy. The other scenarios, such as leaving a group plan, reaching retirement age, or terminating employment, usually present valid opportunities to convert to an individual plan because those events signify a change in eligibility for group coverage, allowing for the conversion option to take effect.