Tim is converting from group coverage to an individual policy with the same insurer after employment termination. This change is called?

• A. Portability
• B. Renewal
• C. Exchange
• D. Conversion

Answer: (D)

The concept at play is the conversion privilege. When someone leaves a job and has group coverage, the insurer often lets them convert that group policy into an individual policy with the same company. This keeps coverage in force even though the person is no longer with the employer.

This is the best answer because it directly matches the idea of switching from group coverage to an individual policy with the same insurer after termination, without needing to requalify medically in most cases. It preserves continuity of protection and usually requires paying a new premium based on the insured’s attained age, and within a specified conversion window after termination.

Portability would imply continuing coverage under a group plan or moving between plans in a way that preserves the group structure, which isn’t what’s described here. Renewal means extending the same policy under the same terms, not converting to a new individual policy. Exchange isn’t the standard term used for this situation.