Health insurance quiz 1

Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is funded with individual life insurance. How many total life policies are needed for this agreement? 12 6 3 1 2 of 10 Questions Remaining Submit Response

6

C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?

ABC is the policyowner, C is the insured, and ABC is the beneficiary

An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

Business overhead expense insurance

Which of the following is a TRUE statement regarding dental insurance? Comprehensive dental care policies usually cover a percentage of reasonable and customary charges for non-routine treatment Comprehensive dental care policies usually cover ALL reasonable and customary charges for non-routine treatment Comprehensive health benefit plans always include dental insurance Specialized dental care is usually covered with the same maximums and deductibles as routine dental treatment

Comprehensive dental care policies usually cover a percentage of reasonable and customary charges for non-routine treatment

A Cross Purchase Buy-Sell Agreement is in place for ABC Company's four founding partners. What would this agreement require if the agreement is funded with individual life insurance?

Each partner must own a policy on the other partners.

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?

Establishes the needs of the individual and his dependents

What is considered a valid reason for small businesses to insure the lives of its major shareholders?

Fund a buy-sell agreement

Which of these is NOT a reason for purchasing life insurance on the life of a minor?

If both parents were to die, it would provide death benefits to the child

A dependent child can receive continuation of coverage under the parents' policy for which of the following conditions?

Physical or mental disability

What use does a business have for a key employee disability insurance policy?

Temporarily replace a disabled key employee

All students attending a large college would most likely be covered by which type of health policy?

blanket policy

A departing employee has decided to continue his group coverage through COBRA. Who pays the premium in this situation?

employee

In life insurance, the needs approach is used mostly to establish

how much life insurance a client should apply for

What does Disability Buy-Sell insurance provide?

lump sum benefit

An Accidental Death & Dismemberment (AD&D) policy will pay the ____ upon the accidental loss of two of the insured's primary parts.

principle sum

Wayne is covered under a nonoccupational group health policy. He is hurt while traveling for business and requires a lengthy hospital stay. His group health policy refuses to pay for hospital expenses because

accident happened on the job

Don and Marie are married and each have a Major Medical plan provided by their employers. Don was born in August of 1969 and Marie was born in March of 1976. For their two dependent children,

Marie's plan is primary and Don's is secondary

All of these statements concerning the coordination of benefits are true, EXCEPT: For dependent children, the insurer for the parent whose birthday comes first in the year is considered primary The secondary insurer does pay benefits The secondary insurer does NOT pay benefits The group insurer for the spouse of the employee with the claim is secondary

The secondary insurer does NOT pay benefits

A life insurance policy owned by a third party:

is used largely in estate-planning as well as business situations

K is an insured under a life insurance policy owned by a third party. Which of these statements is true?

K has no ownership rights

ABC Company takes out a Key Employee policy on its CEO. The CEO leaves ABC Company and begins working for XYZ Company five years later. If this person were to die and the policy is still in force and unchanged, where would the death proceeds be directed?

abc company

All of these statements concerning a Key Employee Life policy is true, EXCEPT: The company pays the premiums and names the beneficiary The key employee must sign the application The key employee names the beneficiary The company is the owner of the policy

the key employee names the beneficiary

A dependent child can receive continuation of coverage under the parents' policy for which of the following conditions?

This typically includes children who are under the age of 26 and are not married, are not employed, and are not enrolled in a group health insurance plan through their own employer.

With key employee life insurance,

the company is the owner of the policy

A group disability income policy will:

usually pay short-term benefits of less than 2 years in duration