Chapter Exam- Health and Accident

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

Disability Buy-Sell

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

Employees premiums paid by the employer is tax deductible to the employer as a business expenditure

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

The employer receives the policy and each employees issues a certificate

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

fixed business expenses

A policyowner would like to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make the change permanent. Which type of designation would fulfill this need?

irrevocable

How does group insurance differ from individual insurance?

Premiums are lower

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

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

100%

Which 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

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

P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?

She does NOT need to provide evidence of insurability

P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period?

Sign an enrollment card

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?

Subrogation

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

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