Ch. 12 Health and Accident Insurance

What 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

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

For a group health plan, what percentage of employees must be covered?

100%

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

Blanket Accident policy

The difference between group insurance and blanket health policies is:

Blanket health policies do not issue certificates

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

Disability buy-sell

What claim is typically excluded from Medical expense policies?

Intentionally self-inflicted injuries

What type of coverage is best described as a short term medical policy?

Interim coverage

A policyowner's rights are limited under which beneficiary designation?

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

What characteristic is associated with a large group disability income policy?

No medical underwriting

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

Subrogation

A business overhead expense policy would cover what if a business owner became 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

All students attending a large university could be covered by

a blanket policy

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

continue group health benefits

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

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

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

fixed business expenses

A new employee that is obtaining non-contributory group Major medical insurance from her employer must:

sign an enrollment card during the open enrollment period

What mode of payment is NOT used by health insurance policies?

single premium

A Business Disability Buyout plan policy is designed

to pay benefits to the corporation or other shareholders