Chapter 1. Health and Life Insurance

a blanket policy

All students attending a large university could be covered by

continue group health benefits

(COBRA) gives workers (and their families) whose employment has been terminated the right to

covers business expenses such as rent and utilities

A Business Overhead Expense policy

Blanket Accident policy

Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?

Loss of eyesight due to an accidental injury

An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

Premiums are lower

How does group insurance differ from individual insurance?

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

Primary carrier

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?

Blanket health policies do not issue certificates

The difference between group insurance and blanket health policies is

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

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

fixed business expenses

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

36 months

Under COBRA, if an employee dies, the dependents may continue their group health coverage for up to

Disability Buy-Sell

Which contract permits the remaining partners to buy-out the interest of a disabled business partner?

Subrogation

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

is less restrictive

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?

Disability income policy premiums are tax-deductible

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

premiums paid for Disability income policies are tax-deductible

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

The employer is the policyowner and each employee receives a certificate of coverage

Which statement is TRUE regarding a group accident & health policy issued to an employer?

Reimbursement

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

Business Overhead Expense

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?