Health and accident insurance

An Insured covered by accidental death and dismemberment insurance has just died. What would happen if the primary beneficiary had already died before the insured and contingent beneficiary?

Proceeds will go to the contingent beneficiary

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

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

A business overhead expense policy

covers business expenses such as rent and utilities

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

irrevocable

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

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

100%

Under which of the following circumstances will the benefits under cobra continuation coverage end?

All group health plans are terminated by the employer

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

Disability Buy-Sell

Which of the following statements does not accurately describe the tax treatment or premiums and benefits of individual accident and health insurance

Disability income policy premiums are tax deductible

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

If the primary beneficiary dies before the insured

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

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

Irrevocable beneficiary

P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?

She does NOT need to provide evidence of insurability

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 mode of payment is NOT used by health insurance policies?

Single Premium

The provision in a group health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policies effective date is referred to as the

Waiting period

All students attending a large university could be covered by

a blanket policy

What is issued to each employee of an employer health plan

certificate

All of the following statements regarding group health insurance is true except

An individual policy is given to each member

The difference between group insurance and blanket health policies is

Blanket health policies do not issue certificates

Which of these circumstances is a business disability buyout sell policy designed to help in the sale of business

Business owner becoming disabled

Which statement is true regarding a minor beneficiary

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

A business disability buyout plan policy is designed to

to pay benefits to the Corporation or other shareholders

How does group insurance differ from individual insurance?

Premiums are lower

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0

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

Common Exclusions to continuation of group coverage include

All of the above

Dental care coverage is designed to cover the cost of

All of the above

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

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

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

No medical underwriting

On an accidental death and dismemberment insurance policy who is qualified to change the beneficiary designation

Policyowner

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

Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is

Business Overhead Expense

The consolidated omnibus budget reconciliation act (cobra) gives workers and there families whose employment has been terminated the right to ?

Continue group health benefits

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 health insurance portability and accountability (hippo) act gives privacy protection for

Health information

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

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

M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

Revocable

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

Subrogation

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

Subrugation

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

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

A business overhead expense policy would cover which of the following if a business owner becomes disability

Utilities and office rent

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

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

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

interim coverage

A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

irrevocable

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

off-the-job accident

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

Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?

reimbursement

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