Insurance Exam: Chapter 12
How many eligible employees must be included in a contributory plan?
75%
Which statement best define a Multiple Employers Welfare Arrangement (MEWA)?
A joining together by employers to provide health benefits for employees
Which of the following options best depicts how the eligibility of members for group health insurance is determined?
By conditions of employment
An association could buy group insurance for its members if it meets all of the following requirements
Has a constitution and by-laws Holds annual meetings Is contributory At least 100 members
The following are statement concerning the COBRA Act of 1985
It covers terminated employees and/or their dependents for up to 36 months after a qualifying event It applies only to employers with 20 or more employees that maintain group health insurance plans for employees COBRA stands fro Consolidated Omnibus Budget Reconciliation Act
How does the cost of a basic coverage benefit plan compare with the cost of a standard benefit plan?
Lower
When compared with the administrative cost found in individual coverage, the per capita administrative cost in group health insurance is
Lower
In group insurance, what is the policy called?
Master policy
In order to be eligible for group health insurance, all of these are conditions an employee must meet
Must be working in a covered classification Must be actively at work Must be a full-time employee
When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and deductibles?
The carry over form the old plan to the new plan
Which of the following statements concerning group health insurance is CORRECT?
The employer is the policyholder
In a group policy, who is issued a certificate of insurance?
The individual insured
Which of the following is true regarding METs?
They allow several small employers purchase less expensive insurance together
What is the purpose of COBRA?
To provide continuation of coverage for terminated employees
In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective?
100%