Health & Accident (Health CH 1)

What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do? -In the event of employment termination, group health insurance can be kept if the employee pays the premiums -Receive a tax credit to help offset the cost of health insurance -Remain on their current coverage for 30 months -In the event of employment termination, group health insurance can be kept if the employer pays the premiums

In the event of employment termination, group health insurance can be kept if the employee pays the premiums

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? Partially taxable income Non-taxable income Taxable income Conditionally taxable income

Taxable income

Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the: -employee's benefits still owed can be claimed -employee cannot be excluded from the new employer's health plan -employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan -new health insurance carrier will have a clear record of any chronic conditions that exist

employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan

The limited period of time given to all members to sign up for a group health plan is called the: enlistment period sign-up period probationary period enrollment period

enrollment period

Which of the following does Coordination of Benefits allow? -Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid -Allows both a group health plan and individual health plan to coordinate their benefit payments -Allows the deductible to be spread out between all the health providers -Allows each health provider to pay 100% of the claim

"Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid". -Coordination of benefits allows the secondary payor to reduce their benefit payments so that no more than 100% of the claim is paid.

How many employees must an employer have for a terminated employee to be eligible for COBRA? 20 30 40 50

20

Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? -Presumptive disability provision -Absolute accidental provision -Accidental death benefit provision -Accidental bodily injury provision

Accidental bodily injury provision (19) Under the accidental bodily injury provision, benefits would be payable if the cause of an injury is unexpected and accidental.

Which of the following is INELIGIBLE to participate in a Section 125 Plan? -Key Employee in a C-Corp -Highly Compensated Employee in an S-Corp -A C-Corp Owner with a greater than 2% share -An S-Corp Owner with a greater than 2% share

An S-Corp Owner with a greater than 2% share

What is issued to each employee of an employer health plan? Provision Receipt Policy Certificate

Certificate

The policyholder for a group health benefit plan is considered to be the: Employee Employer Liaison Insurer

Employer