Health and Accident Insurance Ch. 1

Which contract permits the remaining partners to buy-out the interest of a disabled business partner? Group Disability Business Continuation Disability Buy-Sell Key Person Disability

Disability Buy-Sell

Which of the following statements is correct regarding an employer/employee group health plan? each employee receives a duplicate policy from the insurer the employer receives a master policy and the employees receive certificates the employer and the employees both receive actual policies the employer receives the master policy and the employees receive a summary of benefits

the employer receives a master policy and the employees receive certificates

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? Joint Noncontributory Contributory Participating

Contributory

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? Double indemnity Benefits are taxable More restrictive Less restrictive

Less restrictive

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? $100,000 $200,000 $300,000 $400,000

$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 18 15 6

36

Under which of the following circumstances do the benefits under COBRA continuation coverage expire? Employee has become uninsurable All group health plans are eliminated by the employer Employer moves headquarters to another state Employee becomes permanently disabled

All group health plans are eliminated by the employer

The difference between group insurance and blanket health policies is Blanket health policies do not issue certificates Group health policies do not issue certificates Group health plans may be issued to an airline to cover its passengers Blanket health policies are sometimes called wholesale plans

Blanket health policies do not issue certificates

An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? Loss of life due to a heart attack Loss of eyesight due to an accidental injury Loss of the spleen due to an accidental injury Partial paralysis due to a stroke

Loss of eyesight due to an accidental injury

XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is 25% 50% 75% 100%

Most noncontributory group health plans require 100% participation by eligible employees

Which of the following characteristics are associated with a large group disability income policy? No waiting periods No medical underwriting No elimination periods No limit of benefits

No medical underwriting

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 considered taxable income to the employee Employee's coverage paid for by the employer is tax-deductible to the employer as a business expenditure Employer is given tax credits for contributions made to an employer-provided group health plan Benefits are taxable to the employee

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

Which statement is TRUE regarding a group accident & health policy issued to an employer? Neither the employer or employee are policyowners The employer is issued a certificate of coverage and each employee receives a policy The employer is the policyowner and each employee receives a certificate of coverage Both the employer and employee are policyowners

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

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 Grace Period Waiting Period Postponement Period Elimination Period

Waiting Period

All students attending a large university could be covered by a blanket policy a franchise policy a jumbo group policy a commercial insurance policy

a blanket policy

A Business Overhead Expense policy covers any loss of income by the business owner covers business expenses such as rent and utilities covers employee wages only reimburses the company for any reduction in sales due to the owner's disability

covers business expenses such as rent and utilities

The reason for a business having a Business Overhead Expense Disability Plan is to cover the cost of providing group disability insurance to the employees fixed business expenses the owner's loss of income all business-related expenses and salaries

fixed business expenses

Which of these types of coverage is best described as a short term medical policy? interim coverage provisional coverage transitional coverage conversion coverage

interim coverage