quiz 1 - Intro to Health Insurance

What accurately describes the tax treatment of premiums and benefits of individual Accident and Health insurance?

Disability income policy premiums are not tax-deductible

The federal income tax treatment of employer-provided group health insurance can be accurately described as

Employee's coverage paid for by the employer is tax-deductible to the employer as a business expenditure

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

The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for

health information

What is also called a short term medical policy?

interim coverage

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". In double coverage situations, the insurer covering the employee who has the claim is called the primary insurance company. The primary company must pay as much of the claim as the policy limits permit.

Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition?

A policy that uses the "accidental bodily injury" definition of an accident is less restrictive than the one that uses the "accidental means" definition.

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 Insurance.

For what circumstance is a Business Disability Buy-Sell policy designed to help in the sale of a business?

Business owner becoming disabled

Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?

Business owner becoming disabled

How does group insurance differ from individual insurance?

Group insurance differs from individual insurance in that it provides coverage at a lower cost. premiums are lower

Under which of the following circumstances do the benefits under COBRA continuation coverage expire?

One of the disqualifying events that can result in the termination of continuing coverage under COBRA is when the employer terminates all group health plans. Or all group health plans are eliminated by the employer

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

Reimbursement

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

A Business Overhead Expense policy

covers business expenses such as rent and utilities

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

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.