When an employee leaves a company, how can he transition his group insurance to an individual policy?

The transition of group insurance to an individual policy upon an employee's departure from a company is facilitated primarily through a conversion privilege. This concept allows the individual to convert their group insurance plan into a personal policy without having to provide evidence of insurability, which can often be a significant barrier when seeking individual coverage.

The key aspect of the conversion privilege is the immediacy of the option; it ensures continuity of coverage for the departing employee, allowing them to maintain their health insurance without interruption. Typically, there are time limits specified within the policy during which the conversion must occur after leaving the employer, making it a critical benefit for employees transitioning out of group coverage.

While the other options may relate to various aspects of insurance or policy changes, they do not specifically address the legal right provided to individuals to convert their group insurance into an individual policy upon leaving employment. For example, the policy exchange facility generally refers to broader options in an insurance market, while change of plan provisions and policy change forms deal with modifying existing coverage rather than converting it to a new individual policy.