Intro to Health Insurance Ch. 1

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

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

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 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 his hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?

$25,000

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

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

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

Arthritis

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

Blanket Accidental policy

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

K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

Daughter

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

A policy owner would like to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make the change permanent. Which type of designation would fulfill this need?

Irrevocable

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 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

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

Utilities and office rent

K is the insured and P is the sole beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be paid to P's estate

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

Subrogation

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

fixed business expenses

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

off-the-job accident

The Coordination of Benefits provision

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

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