Health Concepts MC #1
A life insurance policy used to fund an agreement that contractually established the intent of someone to purchase a business upon the insured business owners death is a A) Stock redemption plan B) Buy-sell agreement C) Key person policy D) Split-dollar plan
B
A man works for Company A and his wife works for company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim, A) The insurance plans will split the coverage evenly B) Both plans will pay the full amount of the claim C) The insurance through his company is primary D) The insurance through the wife's company is primary
C
In long-term care insurance, what type of care is provided with intermediate care? A) Daily care, but not nursing care B) Intensive case C) Occasional nursing or rehabilitative care D) Nonmedical daily care
C
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true? A) The group plan will pay B) The group plan will pay a portion of the employee's expenses C) The group plan will pay depending on the employee's recovery D) The group plan will not pay because the employee was injured at work
D
When an employee covered under a health reimbursement account changes employers, the HRA A) Follows the employee B) Returns to the insurer C) Is split between the employee and the employer D) Stays with the employer
D
A woman's health insurance policy dictates which doctors she is allowed to see. Her health providers share an assumed risk for their patients and encourage preventative care. What best describes the health system that the woman is using? A) Managed Care B) Comprehensive health C) Major medical D) Group health
A
An immediate annuity purchased with the face amount at death or with the cash value at surrender can be referred to as one of the following? A) Settlement option B) Comprehensive Annuity C) Functional Annuity D) Roll-Over option
A
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insurance for full disability benefits. Which disability policy provision does this describe? A) Presumptive disability B) Dismemberment disability C) Partial disability D) Residual disability
A
Dave is injured in a construction accident, rendering him unable to work for a year. Which of the following plans would provide him with medical cost and income assistance? A) Workers Compensation B) Employee Disability C) Federal Workers Disability D) Worker's Injury Insurance
A
In which of the following cases is the doctor considered to be an employee of the PPO? A) Closed panel B) Both open and closed panel C) Neither open nor closed panel D) Open panel
A
In which of the following instances would the premium be tax deductible? A) Premiums paid by an employed on a $30,000 group term life insurance plan for employees B) Premiums paid by an individual on his/her own life insurance C) Premiums paid by a mother on her son's policy D) Premiums paid by an employed on the life of a key person
A
Of the following choices, which of the statements about occupational versus nonoccupational coverage is true? A) Disability insurance can be written as occupational and nonoccupational B) Group medical expense policies and individual medical expense policies always cover both occupational and nonoccupational injuries C) Individual disability policies never cover nonoccupational injuries D) Only group disability income policies can be written on an occupational basis
A
The purpose of managed care health insurance plans is to A) Control health insurance claims expenses B) Provide for the continuation of coverage when an employee leaves the plan C) Give the insured an unlimited choice of providers D) Coordinate benefits
A
What is the official name for the Social Security Programs? A) Old Age Survivors Disability Insurance B) Social Insurance Program C) Defined Benefit Retirement Insurance D) Qualified Pension Plan
A
Which of the following are the main factors taken into account when calculating residual disability benefits? A) Present earnings and earnings prior to disability B) Earnings prior to disability and the length of disability C) Employee's full-time state and length of disability D) Present earnings and standard cost of living
A
Which of the following statements regarding the Change of Beneficiaries Provision is false? A) The policyowner has the right to change beneficiaries in any case B) A policyown can change beneficiaries without the consent of the former revocable beneficiary C) The policyowner cannot change beneficiaries if he/she has chose to have an irrevocable beneficiary, unless the policyowner has the permission of the irrevocable beneficiary D) All policies that allow a death benefit must at least provide the option of a change of beneficiary provision.
A
Which of the following would NOT be considered a limited coverage policy? A) Major Medical Expense Insurance B) Accident insurance C) Cancer insurance D) Credit insurance
A
Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner? A) Disability Buy-Sell B) Disability Interest Buy-Out C) Corporate Transfer D) Corporate Disability
A
Who may contribute to an HR-10 plan? A) Self-employed plumber B) Manage of a store C) Corporate executive D) Partner with at least 5% owndership
A
A husband and wife are insured under group health insurance plans at their places of employment. Because their employers pay for their plans, each is covered as a dependent under their spouse's coverage. If the husband is hospitalized, how are the medical expenses likely to be paid? A) The husband will have to select a plan from which he wants to collect benefits B) The benefits will be coordinated C) Neither plan would pay D) The husband can collect from each plan
B
A provision found in insurance policies which prevents the insured from collecting twice for the same loss is called A) Appraisal B) Subrogation C) Consent to settle loss D) Right of salvage
B
All of the following are true of Key Person insurance EXCEPT A) The key employee is the insured B) The plan is funded by the permanent insurance only C) There is no limitation on the number of key employee plans in force at any one time D) The employer is the owner, payor and beneficiary of the policy
B
An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true? A) He cannot withdraw money from his MEC before age 59 1/2 B) He will have to pay a penalty if he is younger than 59 1/2 C) He will have to pay a penalty regardless of his age D) He will not have to pay a penalty, regardless of his age
B
An insured purchased a disability income policy with a 10-year benefit period. The policy stated a 20-day probationary period for illness. If the insured is hospitalized with an illness two weeks after the policy was issued, how much will the policy pay? A) It will pay until the insured is released from the hospital B) Nothing, illness is not covered during the first 20-days of the contract C) The insured will receive a return of premium D) It will pay up to 10 years of benefits
B
Anna loses her left arm in an accident that is covered by her Accidental Death and Dismemberment policy. What kind of benefit will Anna most likely receive from this policy? A) The principal amount in monthly installments B) The capital amount in a lump sum C) The principal amount in a lump sum D) The capital amount in monthly installments
B
For an individual who is NOT covered by an employer-sponsored plan, IRA contributions A) Are partially tax deductible depending on the income level B) Will be tax deductible C) Will be deducted based on the income level D) Are never tax deductible
B
When a disabled dependent child reaches the age limit for coverage, how long does the policyowner have to provide proof of dependency in order for the dependent to remain covered under the policy? A) 15 days B) 31 days C) 60 days D) 10 days
B
Which of the following types of LTC care is not provided in an institutional setting? A) Intermediate care B) Home health care C) Custodial care D) Skilled nursing care
B
Who is a third-party owner? A) An irrevocable beneficiary B) A policyowner who is not the insured C) An insurer who issues a policy for two people D) An employee in a group policy
B
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT A) The employed pays a bonus to a selected employee to fund the policy B) It is considered a nonqualified employee benefit C) The policy is owned by the company D) Any type of insurance policy may be used
C
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy? A) It is taxable only if it exceeds the amounts paid for premiums by 50% B) It is automatically taxable C) It is only taxable if the cash value exceeds the amount paid for premiums D) It is not considered to be taxable
C
In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called? A) Latent Interval B) Accumulation Period C) Blackout Period D) Nonpayment Interval
C
In which of the following locations would skilled care most likely be provided? A) In an outpatient setting B) At a physicians office C) In an institutional setting D) At a patients home
C
The limits of a health reimbursement account are set by A) The insurer B) Federal regulation C) The employer D) State statutes
C
The period of time immediately following a disability during which benefits are not payable is A) The grace period B) The residual period C) The elimination period D) The probationary period
C
What is the goal of the HMO? A) Limiting the deductible and coinsurance to reduce costs B) Providing health services close to home C) Early detection through regular checkups D) Providing free health services
C
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his A) Experience Rating B) Group rate C) Insurer's scheduled rate D) Attained age
D
An insured is covered under 2 group health plans-under his own and his spouse's. He had suffered a lose of $2,000. After the insured paid the total of $500 in deductible and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer? A) $1,500 B) $1,000 C) $2,000 D) $500
D
Andy has a health insurance policy with Sandy listed as a primary beneficiary. He would like to change his primary beneficiary to his sister Mandy. Which of the following is true? A) Andy can only change beneficiaries with Sandy's consent, unless she is designated as an irrevocable beneficiary B) Andy can only change beneficiaries if a court deems the change acceptable C) If Andy wants to change his beneficiary, he will have to cancel his policy and apply for a new one with Mandy name listed instead of Sandy's D) Unless the policy designated Sandy as an irrevocable beneficiary, Andy can make the change without Sandy's consent
D
Social Security is funded by payroll tax imposed on a percentage of employee's income. This percentage is called A) The income tax quotient B) The federal tax basis C) The earned income dividend D) The taxable wedge base
D
Under HIPAA, group health plans cannot impose more than a 12 month pre-existing conditions exclusion for a person who sought medical advice, treatment, or diagnosis within at the last A) 12 months B) 30 days C) 3 months D) 6 months
D
Under what condition are group disability income benefits received by an employee NOT taxable as income? A) When the employer makes all the premium payments B) When the employee is 59 1/2 C) When the amount of the benefit is equal or less than the amount of contributed by the employer D) When the benefits received are equal or less than the employee's percentage of the contribution
D
Which of the following applicants would NOT qualify for a Keogh Plan? A) Some who has been employed for more than 12 months B) Someone who is over 25 years of age C) Someone who works for a self-employed individual D) Someone who works 400 hours per year
D
Which of the following is considered a qualifying even under COBRA? A) Marriage B) Relocation C) Promotion D) Divorce
D
Which type of a hospital policy pays a fixed amount each day that the insured is in the hospital? A) Surgical B) Blanket C) Medigap D) Indemnity
D
