Texas Life and Health

S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct?

100%

An insured is covered under 2 group health plans-under his own and his spouse's. He had suffered a loss of $2000. After the insured paid the total $500 in deductible and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?

$500

Under which condition would be an employees group medical benefits be exempt from income taxes?

An employee's group medical benefits are generally exempt from taxation as income.

Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner?

Disability Buy-Sell

For group medical and dental expenses insurance, what percentage of premium paid by the employer is deductible as a business expense?

100%

under a key Person disability income policy, premium payments

Are made by the business and are not tax-deductible.

Which of the following is NOT true regarding Workers Compensation?

Benefits are offered by the insurer.

What type of insurance is sold to small business owners that must meet overhead expenses such as rent or utilities following a disability?

Business overhead expense

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?

Employee benefits are tax deductible the year in which they were received.

Which of the following statements is correct concerning taxation of long-term care insurance?

Excessive benefits may be taxable.

Which of the following is INCORRECT concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible.

Which of the following premium modes would result in the highest annual cost fora Life Insurance Policy?

Monnthly

Which of the following is correct regarding Business Overhead Expenses insurance?

Premiums are tax deductible.

A husband and wife are insured under group health insurance plans at their places of employment. Because their employers pay for their plans, each is covered as a dependent under their spouse's coverage. if the husband is hospitalized, how are the medical expenses likely to be paid?

The benefits will be coordinated.

Group disability income insurance premiums paid by the employer are

Deductible by the employer as an ordinary business expense.