CH 1 Health and Accident Insurance

How many days does the employee has to convert to an individual policy under the Conversion Policy?

31 days

Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits individual Accident and Health Insurance?

Disability income policy premiums are tax-deductible

Which of the following statements best describes employer contributions for a health insurance policy offered by an employer?

Employer contributions are deductible

Pete is covered by an employer-provided group health insurance plan, which covers employees in multiple states. This plan is governed by the laws of which state?

Where the master contract was issued

All students attending a large university could be covered by:

a blanket policy

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

Under which of the following can an insurance company add additional percentage to Disability or Accidental policy benefits?

Accumulation benefits

All of the following are characteristics of the Age Discrimination in Employment (ADEA), EXCEPT

Affects employees age 50 and older

Which of the following statements BEST describes disability buy-sell insurance policies?

Benefits are typically tax-free

The difference between group insurance and blanket health policies is:

Blanket health policies do not issue certificates

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 statement concerning the Consolidated Omnibus Reconciliation Act of 1985 (COBRA) is INCORRECT?

Continues insurance coverage under COBRA is not available to employees who quit their job

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

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 statements BEST describes what HIPAA portability rules offer a person who decides to change from one group medical plan to another group plan?

Limits the ability of a new employer plan to exclude coverage for preexisting conditions

Taft-Hartley Trusts are also known as:

Negotiated Truteeships

How does group insurance differ from individual insurance?

Premiums are lower

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

An insurance company can write an Accidental Death and Dismemberment policy as a(n):

Stand-alone policy or rider

Which of the following incidents would NOT be covered by an Accidental Death and Dismemberment policy?

Suicide

A man and his wife are covered by his employer-sponsored group health plan. She is employed by another company which also provides her with group health insurance. If she suffers an injury that requires a claim, which plan will be considered primary?

The wife's policy

The reason for a business having a Business Overhead Expense Disability Plan is to cover

fixed business expenses

Which of these types of coverage is best described as a short term medical policy?

interim coverage