Health insurance lesson 3
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
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
Group health plans typically contain a coordination of benefits ( COB ) provision . This provision's purpose is to
avoid the duplication of benefit payments
All students attending a large university could be covered by :
blanket policy
An accident policy will most likely pay a benefit for a n ) :
on - the - job accident
The benefits under a Disability Buy - Out policy are
payable to the company or another shareholder
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
Common exclusions to the continuation of group coverage include :
All of the above
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
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
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
All of the following statements regarding group health insurance is true , EXCEPT :
An individual policy is given to each member
Which of the following medical expenses does Cancer insurance NOT cover ?
Arthritis
The difference between group insurance and blanket health policies is :
Blanket health policies do not issue certificates
The difference between group insurance and blanket health policies is :
Blanket health policies do not issue certificates Group health
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
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
What is issued to each employee of an employer health plan ?
Certificate
Which of the following would be a likely candidate for disability income insurance on a key employee ?
Company executive
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
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
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
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
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first , where are the death proceeds to be directed under the Uniform Simultaneous Death Act ?
Insured's contingent beneficiary
Which of the following claims are typically excluded from Medical expense policies ?
Intentionally self - inflicted injuries
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 accidental bodily injury definition of an accident differs from one that uses the " accidental means " definition ?
Less restrictive
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
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
On an Accidental Death and Dismemberment ( AD & D ) insurance policy , who is qualified to change the beneficiary designation ?
Policyowner
T is covered by two health insurance plans : a group plan through his employer and his spouse's plan as a dependent . Under the Model Group Coordination of Benefits provision , when T files a claim , his employer's plan is considered the :
Primary carrier
An insured covered by Accidental Death and Dismemberment ( AD & D ) insurance has just died . What will happen if the primary beneficiary had already died before the insured and contingent beneficiary ?
Proceeds will go to the contingent beneficiary
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy ?
Reimbursement
T is covered by an Accidental Death and Dismemberment ( AD & D ) policy that has an irrevocable beneficiary What action will the insurance company take if T requests a change of beneficiary
Request of the change will be refused
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 his son ?
Revocable
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
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party ?
Subrogation
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
A Business Overhead Expense policy would cover which of the following if a business owner becomes 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
The 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
Dental care coverage is designed to cover the costs of all of the following EXCEPT :
loss of income
A Business Disability Buyout plan policy is designed :
to pay benefits to the Corporation or other shareholders