Health insurance lesson 3

Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks ?

Business Overhead Expense

Group voluntary long - term care policy premiums are typically deducted from the employee's income and ,

are less costly as compared to individual long term care coverage

Group health plans typically contain a coordination of benefits ( COB ) provision . This provision's purpose is to

avoid the duplication of benefit payments

All students attending a large university could be covered by :

blanket policy

An accident policy will most likely pay a benefit for a n ) :

on - the - job accident

The benefits under a Disability Buy - Out policy are

payable to the company or another shareholder

The benefits under a Disability Buy - Out policy are :

payable to the company or another shareholder

The Coordination of Benefits provision :

prevents an insured covered by two health plans from making a profit on a covered loss

Common exclusions to the continuation of group coverage include :

All of the above

T and S are named co - primary beneficiaries on a $ 500,000 Accidental Death and Dismemberment policy insuring their father . Their mother was named contingent beneficiary . Five years later , S dies of natural causes and the father is killed in a scuba accident shortly afterwards . How much of the death benefit will the mother receive ?

$ 0

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

S is employed by a large corporation that provides group health coverage for its employees and their dependents . If S dies , the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations ?

36

Under which of the following circumstances will the benefits under COBRA continuation coverage end ?

All group health plans are terminated by the employer

All of the following statements regarding group health insurance is true , EXCEPT :

An individual policy is given to each member

Which of the following medical expenses does Cancer insurance NOT cover ?

Arthritis

The difference between group insurance and blanket health policies is :

Blanket health policies do not issue certificates

The difference between group insurance and blanket health policies is :

Blanket health policies do not issue certificates Group health

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

Business owner becoming disabled

What is issued to each employee of an employer health plan ?

Certificate

Which of the following would be a likely candidate for disability income insurance on a key employee ?

Company executive

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

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

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

Disability income policy premiums are tax - deductible

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

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

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first , where are the death proceeds to be directed under the Uniform Simultaneous Death Act ?

Insured's contingent beneficiary

Which of the following claims are typically excluded from Medical expense policies ?

Intentionally self - inflicted injuries

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

Less restrictive

Which of the following characteristics is associated with a large group disability income policy ?

No medical underwriting

Which statement is true regarding a minor beneficiary ?

Normally , a guardian is required to be appointed in the Beneficiary clause of the contract

P and Q are married and have three children . P is the primary beneficiary on Q's Accidental Death and Dismemberment ( AD & D ) policy and Q's sister R is the contingent beneficiary . P , Q , and R are involved in a car accident and Q and R are killed instantly . The Accidental Death benefits will be paid to :

P only

On an Accidental Death and Dismemberment ( AD & D ) insurance policy , who is qualified to change the beneficiary designation ?

Policyowner

T is covered by two health insurance plans : a group plan through his employer and his spouse's plan as a dependent . Under the Model Group Coordination of Benefits provision , when T files a claim , his employer's plan is considered the :

Primary carrier

An insured covered by Accidental Death and Dismemberment ( AD & D ) insurance has just died . What will happen if the primary beneficiary had already died before the insured and contingent beneficiary ?

Proceeds will go to the contingent beneficiary

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

Reimbursement

T is covered by an Accidental Death and Dismemberment ( AD & D ) policy that has an irrevocable beneficiary What action will the insurance company take if T requests a change of beneficiary

Request of the change will be refused

M purchased an Accidental Death and Dismemberment ( AD & D ) policy and named his son as beneficiary M has the right to change the beneficiary designation at anytime . What type of beneficiary his son ?

Revocable

P is an employee who quits her job and wants to convert her group health coverage to an individual policy After the expiration of COBRA benefits , which of the following statements is TRUE ?

She DOES need to provide evidence of insurability

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party ?

Subrogation

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

A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled ?

Utilities and office rent

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

The Consolidated Omnibus Budget Reconciliation Act ( COBRA ) gives workers ( and their families ) whose employment has been terminated the right to :

continue group health benefits

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

fixed business expenses

Dental care coverage is designed to cover the costs of all of the following EXCEPT :

loss of income

A Business Disability Buyout plan policy is designed :

to pay benefits to the Corporation or other shareholders