Quiz 9

Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner?

Disability buy-sell - Provides funds for business organizations to purchase the business interest of a disabled partner . The premiums are not deductible but the benefits are received income tax free.

Which of the following statements about occupational versus non-occupational coverage is True?

Disability insurance can be written as either or

Which of the following statements is correct concerning taxation of long-term care insurance?

Excessive benefits may be taxable

Which characteristic does not describe managed-care?

Unlimited access to providers

Which of the following is correct regarding the taxation of group medical expense premiums/benefits ?

Premiums are tax deductible and benefits are not taxed

S is a sole business proprietor who owns a medical expense plan. What % of the cost of the plan may he deduct?

100%

Which of the following is not true of disability buy-sell coverage?

Benefits are considered taxable income to the business

The mode of the premium payment

Is defined as a frequency and amount of the premium payment

The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called?

Non-occupational coverage

Premium payments for personally owned disability income policies are

Not tax deductible

Which of the following definitions would make it easier to qualify for a total disability benefits?

The more liberal "own occupation"

Individuals who itemizes deductions can claim deductions for medical expenses not covered by heath insurance that exceed what % of their adjusted gross income?

10%

Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for Rich he is qualified. In this case total disability is defined as

Any occupation a more restrictive than other definitions

Which of the following describes taxation of individual disability income insurance premiums and benefits?

Premiums are not tax-deductible, and benefits are not taxable

Which of the following premium modes would result in the highest annual cost for an insurance policy?

Monthly