Chapter one health and accident insurance xcel

The health insurance premiums paid for by each partner in a partnership is considered to be

100% tax deductible

Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy?

31

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

31 days

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

Disability Buy-Sell

What type of group plan is excluded from HIPAA statuses?

Disability income

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

All of the following are characteristics of the employee retirement income security act except

Does not require filing annual financial report to the IRS

The premiums for continued health insurance coverage under cobra are paid for by the

Employee

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

Employer contributions are deductible

A business overhead expense policy would cover which of the following is a business owner becomes disabled

Utilities and office rent

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

The reason for a business having a business overhead expense disability plan is to cover

fixed business expenses

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

An accidental death time limit policy states that the insured must die within ______ Of the accident in order for the additional death benefits to be paid

90 days

Mike had both of his legs amputated after a boulder fell on them. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?

Accidental death dispersement

Under which of the following can an insurance company add additional percentage to disability or accidental death policy benefits?

Accumulation benefits

All of the following are characteristics of the age discrimination in employment (ADEA) except

Affects boys age 50 and older

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

All group health plans are eliminated by the employer

The document that gives a health insurance company the authority to pay benefits directly to a policyholders healthcare provider is the

Assignment of benefits

How many employees must employer have for the consolidated Omnibus budget reconciliation act of 1985 to apply

At least 20

Which of the following statements best describes disability buy sell insurance policies

Benefits typically received tax-free

The difference between group insurance and blanket health policies is

Blanket health policies do not issue certificates

An accident and health insurance policy defines an injury as "bodily injury by accidental means". For an injury to be covered on this policy, what is required?

Both the cause and resultant injury must be accidental

A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy

Business Overhead Expense

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

Which of the following does a reducing term insurance cover

Business outstanding loans if the owner is totally disabled

Many small business owners worry how their business would survive financially 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

Which statement concerning the consolidated Omnibus budget reconciliation act of 1985 is incorrect

Continued insurance coverage under cobra is not available to employees to quit their job

A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary?

Her group health plan

What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?

Irrevocable beneficiary

In a 501(c)(9)Trust, the trust must be controlled by

It's member an independent trustee and fiduciary

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

Less restrictive

Which of the following statements best describes what HIPAA portability rules offer a person decides to change from one group to another group plan?

Limits the ability of a new employer plan to exclude coverage for pre-existing conditions

An insurance company would most likely pay benefits under an accidental death and dismemberment policy for which of the following losses?

Loss of eyesight due to an accidental injury

Peter is 35 years old (born in August) and covered under his employers group health plan. Peters wife Kate is 30 years old (born in May) and employed by another employer who provides her with group health insurance as well how are their two children provided coverage if they are insured under both plans

Mary's plan is primary

Taft Hartley trusts are also known as

Negotiated trusteeships

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

No medical underwriting

Which policy has benefits that are considered taxable

Non-contributory group disability income policy

Which of the following is not a function of accidental and health insurance?

Pays a death benefit as a result of an illness

How does group insurance differ from individual insurance?

Premiums are lower

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

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

Term policies are also known as

Short term policies period of time policies and interim coverage

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

Which of the following help to reduce or avoid adverse selection

Sound underwriting

The company can write an accidental death and disbursement policy as a

Stand alone policy or rider

Which of the following incidents would not be covered by an accidental death as disbursement policy

Suicide

Which parties are directly involved in a group accident and health insurance contract?

The employer and the insurer

Which statement is true regarding a group accident and health policy to an employer

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

A man and his wife are covered By his employer sponsored group health plan. She is employed by which also provides her with group health insurance. If she suffers an injury that requires a claim what plan would be considered primary

The wife's policy

What is issued to each employee of an employer health plan

certificate

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

A business overhead expense policy

covers business expenses such as rent and utilities

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

interim coverage

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