Chapter exam-intro to health insurance

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

Disability Buy-Sell

Which of these types of coverage is best described as a short term medical policy

interim coverage

A policyowner's rights are limited under which beneficiary designation?

irrevocable

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

No medical underwriting

Which statement is true regarding a minor beneficiary

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

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 type of policy pays benefits to a policyholder covered under a Hospital Expense policy?

reimbursement

A Business Disability Buyout plan policy is designed

to pay benefits to the Corporation or other shareholders

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

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

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

What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?

Irrevocable beneficiary

Which of the following BEST describes how a policy that uses the "accident bodily injury" definition of an accident differs from one that uses the "accidental mean's" 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

The benefits under a Disability Buy-Out policy are

payable to the company or another shareholder

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

Subrogation

Dental care coverage is designed to cover the costs of all of the following EXCEPT:

loss of income

Which of the following claims are typically excluded from medical expense policies

Intentionally self-inflicted injuries

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

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%

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 which of the following circumstances will the benefits under COBRA continuation coverage end?

All group health plans are terminated by the employer

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

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 benefits, which of the following statements is true?

She DOES 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 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

Common exclusions to continuation of group coverage include

all of the above

P loses an arm in a farm accident and is paid $10,000 from his Accidental Death and Dismemberment policy. This benefit is known as the

capital sum

Which of the following would be a likely candidate for disability income insurance on a key employee

company executive

Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to:

continue group health benefits

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

fixed business expenses

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

off-the-job accident