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Questions and Answers
The benefits under a Disability Buy-Out policy are?
The benefits under a Disability Buy-Out policy are?
payable to the company or another shareholder
Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for?
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for?
health information
When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?
When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?
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The federal income tax treatment of employer-provided group health insurance can be accurately described as?
The federal income tax treatment of employer-provided group health insurance can be accurately described as?
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Under which of the following circumstances do the benefits under COBRA continuation coverage expire?
Under which of the following circumstances do the benefits under COBRA continuation coverage expire?
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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?
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?
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A Business Overhead Expense policy covers?
A Business Overhead Expense policy covers?
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A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled?
A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled?
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XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is?
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is?
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Which contract permits the remaining partners to buy-out the interest of a disabled business partner?
Which contract permits the remaining partners to buy-out the interest of a disabled business partner?
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Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?
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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?
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?
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An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?
An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?
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All students attending a large university could be covered by?
All students attending a large university could be covered by?
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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?
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?
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Which of the following characteristics are associated with a large group disability income policy?
Which of the following characteristics are associated with a large group disability income policy?
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The difference between group insurance and blanket health policies is?
The difference between group insurance and blanket health policies is?
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The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the?
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the?
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Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
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Which of the following statements is correct regarding an employer/employee group health plan?
Which of the following statements is correct regarding an employer/employee group health plan?
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Which statement is TRUE regarding a group accident & health policy issued to an employer?
Which statement is TRUE regarding a group accident & health policy issued to an employer?
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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?
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?
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Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is?
Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is?
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How does group insurance differ from individual insurance?
How does group insurance differ from individual insurance?
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The reason for a business having a Business Overhead Expense Disability Plan is to cover?
The reason for a business having a Business Overhead Expense Disability Plan is to cover?
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Study Notes
Disability Buy-Out Policy
- Benefits under a Disability Buy-Out policy are payable to the company or another shareholder.
- A Disability Buy-Sell contract allows remaining partners to buy out the interest of a disabled business partner.
Accident and Health Insurance Tax Treatment
- Disability income policy premiums are not tax-deductible.
- Premiums for employer-provided group health insurance are tax-deductible for the employer as a business expenditure.
Health Information Privacy
- The Health Insurance Portability and Accountability Act (HIPAA) provides privacy protections for health information.
Group Health Plan Coverage
- Employees contribute to a Contributory group health plan.
- 100% of eligible employees must be covered if the employer pays the entire premium.
COBRA Continuation Coverage
- COBRA benefits expire when all group health plans are eliminated by the employer.
Coordination of Benefits
- In a coordination of benefits situation, an employer's group plan is the primary carrier when an employee is covered under two health insurance plans.
Business Overhead Expense Policy
- Covers fixed business expenses, such as rent and utilities, if a business owner becomes disabled.
Accidental Death and Dismemberment
- Loss of eyesight due to accidental injury is covered under an Accidental Death and Dismemberment policy.
- A principal sum of $50,000 would pay a maximum of $25,000 for the loss of a finger.
Group vs. Blanket Health Policies
- Large group disability income policies typically have no medical underwriting.
- Blanket health policies do not issue certificates, unlike group insurance.
Waiting Period
- The waiting period in a Group Health policy allows the insurer to postpone coverage for 30 days for a covered illness after the policy's effective date.
Subrogation
- Subrogation refers to the reimbursement of benefits for injuries caused by a third party.
Group Health Policies Characteristics
- Employers receive a master policy while employees receive certificates of coverage under a group health plan.
COBRA Regulations
- Surviving spouses and dependents can continue group health coverage for a maximum of 36 months under COBRA if an employee dies.
Small Business Disability Protection
- Business Overhead Expense policies are best suited for small businesses concerned about financial survival after the owner's disability.
Individual vs. Group Insurance
- Group insurance typically has lower premiums compared to individual insurance policies.
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Description
This quiz covers essential aspects of Disability Buy-Out policies, tax treatments for Accident and Health Insurance, and HIPAA regulations. It also addresses group health plan coverage and COBRA continuation benefits. Test your understanding of these critical insurance concepts.
