Chapter 1
Which of the following premium factors is unique to health insurance (as opposed to life insurance)?
Morbidity
Business Overhead Expense Insurance pays for
business expenses when a business owner becomes disabled
What percentage of eligible employees must participate in a noncontributory group health plan before it can be put in effect?
100%
During the underwriting process for a group health policy, it was discovered that 15 out of 50 members of the group have major health issues. How would the insurer handle this?
Accept or reject the whole group
The problem of overinsurance is addressed in which health insurance provision?
Coordination of benefits
Who is financially liable for the payment of covered claims in a fully insured group health plan?
Insurer
Buy-sell plans are typically funded by which two types of insurance?
Life insurance and disability insurance
Which of the following is NOT typically covered under vision care insurance?
Retina surgery
Coverage is limited for vision and dental insurance in all of the following ways EXCEPT
Specific dollar amount for examinations
What is the income tax consequence if Marie's employer pays for her group disability income coverage
The employer can deduct the premium payments.
Minimum participation standards exist for group health insurance plans in order to
prevent adverse selection
