Types Of Health Insurance Policies Q&A
An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?
$102
How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?
12
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
15 days
Which of the following disability income policies would have the highest premium?
15-day waiting period / 10-year benefit period
What is the period of coverage for events such as death or divorce under COBRA?
36 months
Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within
90 days
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
Which of the following would be an example of a limited accident and health insurance policy?
A dread disease policy
The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?
Accident-only
Which of the following is NOT covered under a long-term care policy?
Acute care hospital
Kevin and Nancy are married; Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the following options would be best for Nancy at this point?
COBRA
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
Conversion
Which of the following terms describes a specific dollar amount of the cost of care that must be paid by the member?
Copayment
In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?
Corridor
Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
Disability Buy-Sell
This arrangement specifies who will purchase a disabled partner's interest in the event he or she becomes disabled.
Disability buyout
In a disability policy, the probationary period refers to the time
During which illness-related disabilities are excluded from coverage.
Which of the following is NOT covered by Health Maintenance Organizations (HMOs)?
Elective services
In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the
Elimination period
Most LTC plans have which of the following features?
Guaranteed renewability
Which of the following types of LTC is NOT provided in an institutional setting?
Home health care
A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT
Income
All of the following are differences between individual and group health insurance EXCEPT
Individual insurance does not require medical examinations, while group insurance does require medical examinations.
Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT
Individual members of the group may select the level of benefits for their own coverage
Which of the following is NOT true regarding a flexible spending account?
It does not have limits on contributions.
Which of the following is true of a PPO?
Its goal is to channel patients to providers that discount services.
Which of the following would NOT be considered a limited coverage policy?
Major medical expense insurance
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal Sum
In the event of a loss, business overhead insurance will pay for
Rent
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
Skilled care
Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage?
Special Risk Policy
The annual contribution limit of a Dependent Care Flexible Spending Account is set by
The IRS
An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?
The PPO will pay reduced benefits.
Which statement accurately describes group disability income insurance?
The extent of benefits is determined by the insured's income
Which statement is NOT true regarding underwriting group health insurance?
The group is assessed individually for insurability.
Hospital indemnity/hospital confinement indemnity policy will provide payment based on
The number of days confined in a hospital.
An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense. Which of the following is true?
There will be a tax
Which of the following is true regarding optional benefits with long-term care policies?
They are available for an additional premium
What is the purpose of COBRA?
To provide continuation of coverage for terminated employees
