Other Health Insurance Concepts QUIZ

The mode of premium payment

Is defined as the frequency and the amount of the premium payment.

Which of the following is correct regarding the taxation of group medical expense premiums and benefits?

Premiums are tax deductible and benefits are not taxed

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.

When a disabled dependent child reaches the age limit for coverage, how long does the policyowner have to provide proof of dependency in order for the dependent to remain covered under the policy?

31 days

A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?

The benefits will be coordinated

Premium payments for personally-owned disability income policies are

not tax deductible

Which of the following statements is correct concerning taxation of long-term care insurance?

Excessive benefits may be taxable.

Which statement accurately describes the Change of Beneficiary provision?

Any policy that has a death benefit must also have a Change of Beneficiary provision

Which of the following is not true of Disability Buy-Sell coverage?

Benefits are considered taxable income to the business.

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

monthly

A brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses?

own occupation - less restrictive than other definitions

Workers Compensation benefits are regulated by which entity?

state government

Which of the following would best describe total disability?

A person's ability to work is significantly reduced or eliminated for the rest of his/her life.

Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner?

Disability Buy-Sell