Chapter Exam - Health and Accident

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

Disability buy-sell (A disability buy-sell plan allows the remaining partners to buy out the interest of the disabled business partner.)

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0 (The mother receives $0 because T is still alive and the sole primary beneficiary, while the mother is still the contingent beneficiary.)

All students attending a large university could be covered by:

A blanket policy (Blanket health insurance is issued to cover a group who may be exposed to the same risks, but the composition of the group (The individuals within the group) are constantly changing.)

Dental care coverage is designed to cover the costs of:

All of the above (Dental care coverage is designed to cover the costs of : Oral Surgery, Root Canal Therapy, and Orthodontia.)

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

If the primary beneficiary dies before the insured (A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured's death.)

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are data proceeds to be directed under the Uniform Simultaneous Death Act?

Insured's contingent beneficiary (under the Uniform Simultaneous Death Act, if both insured and primary beneficiary are killed in the same accident and there is insufficient evidence to show who died first, policy proceeds will be paid as if the insured died last. in other words, the proceeds will be paid to the secondary or contingent beneficiary.)

Which of the following claims are typically excluded from Medical expense policies?

Intentionally self- incited injuries (Medical expense policies usually EXClUDE coverage for claims resulting from treatment of intentionally self-inflicted injuries.)

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

Irrevocable (designation may not be changed without the written consent of the beneficiary.)

Which statement is true regarding a minor beneficiary?

Normally, a guardian is required to be appointed in the Beneficiary Clause of the contract (In most causes, Insurers require that a guardian be appointed in the beneficiary clause of the policy or that a guardian be designated in the will.)

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to:

P only (Benefits will be paid to P because P survived the accident and is the primary beneficiary)

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)

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 policy owner may change the beneficiary at any time without notifying or getting permission from the beneficiary.)

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 (Policy's purpose is to cover certain overhead expenses that continue when the business owner is disabled.)

An accident policy will most likely pay a benefit for a(n)

off the job accident (An accident policy would most likely pay a benefit for an off-the-job accident)

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.)