bychapter exam health and accident
the health insurance premiums paid for by each partner in a partnership is considered to be
100% tax deductible
under HIPAA, medical plan late enrollees may be excluded for pre-existing conditions for a maximum of
18 months
how many employees must an employer have for the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to apply?
20 or more
nonqualified medical expense distributions from a health savings account (HSA) have a tax penalty of
20%
Laura is a new employee and will be obtaining non-contributory group major medical insurance from her new employer. Which of the following actions must she take during the open enrollment period? A. Authorized for payroll deductions B. Agree to a physical examination C. Sign an enrollment card D. Register with her state of residency
C. Sign an enrollment card
which of the following statements BEST describes employer contributions for employer-provided health insurance? A. employer is given tax credits for contributions paid capital B. Employee can deduct contributions by the employer C. Employer contributions are deductible D. Employer contributions are taxable to the employee
C. employer contributions are deductible
for employees covered in multiple States under a Group Health Plan, jurisdiction rules cannot alter
COBRA laws
Steve has a group disability income policy where the premiums are paid by his employer. He elected to pay for additional residual disability coverage. Which of the following statements is true?
Steve will pay taxes on the disability benefit received from his employer, but will receive any residual disability benefits tax free
typically, States will permit the grouping of two or more small Employers in the same industry for obtaining group health insurance at a favorable rate. This grouping of employers is known as a multiple employer
Trust
Laura has an employer based preventive health care plan that focuses on and enrollee's problems, such as drug abuse or stress. These plans are called
Wellness programs
when group benefits under COBRA have expired, a fully insured Group Policy can be converted to
an individual health policy
accident and health insurance claim handling is made more convenient to the insured by utilizing
assignment of benefits
accident health insurance claim handling has made more convenient to the insured by utilizing
assignment of benefits
which of the following statements BEST describes all Double Indemnity provision in travel accident insurance?
benefits are doubled under certain circumstances stated in the policy
what is the federal income tax liability of a death benefit paid from a health insurance policy to a named beneficiary?
benefits are not taxable
In a disability buy-sell agreement, the policies funding the agreement are owned by the
business entity
a disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?
business overhead expense
ABC Corporation purchases and is beneficiary of an individual disability income insurance policy on a key employee. Which of the following statements is true? A. premiums paid by the company are tax-deductible B. benefits are tax-deductible to the key employee C. benefits are received tax free by the company D. premiums paid by the company are tax-deductible to the key employee
c. Benefits are received tax free by the company
a comprehensive Group Policy also covers expenses related to Vision Care. Between cataract surgery, a routine eye exam, corrective vision glasses, and corrective contact lenses- which is typically not covered under a vision plan?
cataract surgery
an employer pays the accident and health insurance premiums for its employees. The premiums paid by the employer are
deductible to the business
which parties are directly involved in a group accident and health insurance contract?
employer and insurer
trade Association groups that are eligible for group medical benefits normally are
in the same industry
James owns a business and purchased a policy that covers the business expense of finding a permanent or temporary employee to replace a disabled one. This type of disability coverage is called
key employee coverage
what is the name of the period of time during which a new employee is ineligible for group health insurance coverage?
probationary period
a certificate of coverage for a group health policy is best described as
proof of coverage for the employee
which type of policy pays benefits to a policyholder covered under a hospital expense policy?
reimbursement
Mary is an employee who is covered with a disability income policy through her employer. She pays for the portion of the premium attributable to the cost of residual disability benefits, while her employer pays for the remainder. What are the tax implications of this policy?
residual benefits will be received income tax free
under a key person disability income policy, benefits will be received as
tax free income to the business
under which circumstance can an insurance company offer Group Health Insurance?
the sponsoring group provides an employer-employee relationship
under HIPAA requirements, eligibility for the pre-existing conditions exclusion waiver under new coverage is lost if
there's a breaking coverage of more than 63 days
true or false: when concerning the relationship between group health insurance plans in Medicare, group health coverage is available to workers over the age of 65
true
how do birthing centers reduce medical costs?
using certified nurse midwives