Other Health Insurance Concepts (3%)

Which of the following statements about occupational vs. non-occupational coverage is TRUE?

Disability insurance can be written as occupation or non-occupational

The purpose of managed care health insurance plans is to

Control health insurance claims expenses

An insured is covered by a partially contributory group disability income plan that pays benefits of $4,000 a month. If the insured pays 25% of the monthly premium, how much of the monthly benefit would be taxable?

$3,000 (75%)

Which of the following premium modes would result in the highest annual cost for an insurance policy?

Monthly

In an individual long-term care insurance plan, the insured is able to deduct the premium from taxes. What income taxation will be imposed on the benefits received?

No tax

The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called

Non-Occupational Coverage

Which of the following applies to partial disability benefits?

Payment is limited to a certain period of time

For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?

100%

Disability Income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, total disability is defined as

Any occupation - more restrictive than other definitions

A women's health insurance policy dictates which doctors she is allowed to see. Her health providers share an assumed risk for their patients and encouraging preventive care. What best describes the heath system that the women is using?

Managed Care

Which of the following are the main factors taken into account when calculating residual disability benefits?

Present earnings and earning prior to disability

When an insurer combines two periods of disability into one, the insured must have suffered a

Recurrent Disability

A provision found in insurance policies which prevents the insured from collecting twice for the same loss is called

Subrogation

An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?

The group plan will not pay because the employee was injured at work.

A policyowner has a health insurance policy with his wife listed as the primary beneficiary. He would like to change the primary beneficiary to his sister. Which of the following is true?

Unless the policy designated the current beneficiary as irrevocable, the policyowner can make the change at any time.