Ch. 12 Health and Accident Insurance
What type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks?
Business Overhead Expense
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 benefits under a Disability Buy-Out policy are
payable to the company or another shareholder
The coordination of benefits provision:
prevents an insured covered by two health plans from making a profit on a covered loss
For a group health plan, what percentage of employees must be covered?
100%
Accidental death coverage is provided to commercial airline passengers in which of the following types of policies?
Blanket Accident policy
The difference between group insurance and blanket health policies is:
Blanket health policies do not issue certificates
Which contract permits the remaining partners to buy-out the interest of a disabled business partner?
Disability buy-sell
What claim is typically excluded from Medical expense policies?
Intentionally self-inflicted injuries
What type of coverage is best described as a short term medical policy?
Interim coverage
A policyowner's rights are limited under which beneficiary designation?
Irrevocable
What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?
Irrevocable beneficiary
What characteristic is associated with a large group disability income policy?
No medical underwriting
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Subrogation
A business overhead expense policy would cover what if a business owner became disabled?
Utilities and office rent
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
All students attending a large university could be covered by
a blanket policy
Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers whose employment has been terminated the right to:
continue group health benefits
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
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
The reason for a business having a Business Overhead Expense Disability Plan is to cover
fixed business expenses
A new employee that is obtaining non-contributory group Major medical insurance from her employer must:
sign an enrollment card during the open enrollment period
What mode of payment is NOT used by health insurance policies?
single premium
A Business Disability Buyout plan policy is designed
to pay benefits to the corporation or other shareholders