( 1 ) - Intro to Health Insurance - Health and Accident

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

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

How does group insurance differ from individual insurance?

Premiums are lower. (Group insurance differs from individual insurance in that it provides coverage at a lower cost.

The Coordination of Benefits provision?

Prevents an insured covered by two health plans from making a profit on a covered loss.

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. ( Under an employer/employee group health plan the employer receives a master policy and the employees receive certificates.)

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. (The maximum sum payable would be the capital sum, or $25,000.)

B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary?

$300,000

S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?

36. (Under COBRA, if an employee dies, the dependents may continue their group health coverage for up to 36 months.)

Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?

A Blanket Accident policy. (provides Accidental Death coverage to airplane passengers.)

Group/voluntary long-term care policy premiums are typically deducted from the employee's income and?

Are less costly as compared to individual long term care coverage. (The premiums on a group/voluntary policy are usually deducted from an employee's wages and are generally lower than the premiums on an individual policy.)

G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is?

Business Overhead Expense. (A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the business owner is disabled.)

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. (A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the businessowner is disabled.)

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

Certificate.

The benefits under a Disability Buy-Out policy are?

Payable to the company or another shareholder. (Benefits payable under a Disability Buy-Out policy are paid to the company or another shareholder.)

K is the insured and P is the sole beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be paid to P's estate. ( Because the sole beneficiary outlived the insured, the proceeds will be payable to the estate of the deceased beneficiary.)

M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

Revocable. (With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.)