1 - Intro to Health Insurance

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the

Waiting Period

When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?

Contributory

Which contract permits the remaining partners to buy-out the interest of a disabled business partner?

Disability Buy-Sell

Which of the following characteristics are associated with a large group disability income policy?

No medical underwriting

Which of the following statements is correct regarding an employer/employee group health plan?

the employer receives a master policy and the employees receive certificates

Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is

Business Overhead Expense

Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?

Business owner becoming disabled

What is issued to each employee of an employer health plan?

Certificate

Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?

Disability income policy premiums are tax-deductible

Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition?

Less restrictive

An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

Loss of eyesight due to an accidental injury

J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?

$25,000

XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is

100%

Under which of the following circumstances do the benefits under COBRA continuation coverage expire?

All group health plans are eliminated by the employer

The difference between group insurance and blanket health policies is

Blanket health policies do not issue certificates

The federal income tax treatment of employer-provided group health insurance can be accurately described as

Employee's coverage paid for by the employer is tax-deductible to the employer as a business expenditure

How does group insurance differ from individual insurance?

Premiums are lower

T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision?

Primary carrier

Which statement is TRUE regarding a group accident & health policy issued to an employer?

The employer is the policyowner and each employee receives a certificate of coverage

A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled?

Utilities and office rent

All students attending a large university could be covered by

a blanket policy

A Business Overhead Expense policy

covers business expenses such as rent and utilities

The reason for a business having a Business Overhead Expense Disability Plan is to cover

fixed business expenses