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Questions and Answers
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?
Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?
Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for health information.
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for health information.
True
What is the maximum amount J will receive from his Accidental Death and Dismemberment policy with a principal sum of $50,000 if he cuts off one finger?
What is the maximum amount J will receive from his Accidental Death and Dismemberment policy with a principal sum of $50,000 if he cuts off one finger?
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Which of these types of coverage is best described as a short-term medical policy?
Which of these types of coverage is best described as a short-term medical policy?
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How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?
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Under which circumstances will the benefits under COBRA continuation coverage end?
Under which circumstances will the benefits under COBRA continuation coverage end?
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The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers the right to what?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers the right to what?
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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 plan?
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 plan?
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Who is qualified to change the beneficiary designation on an Accidental Death and Dismemberment (AD&D) insurance policy?
Who is qualified to change the beneficiary designation on an Accidental Death and Dismemberment (AD&D) insurance policy?
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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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What type of designation would fulfill the need to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make it permanent?
What type of designation would fulfill the need to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make it permanent?
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In the scenario where P, Q, and R are involved in a car accident, who will the Accidental Death benefits be paid to?
In the scenario where P, Q, and R are involved in a car accident, who will the Accidental Death benefits be paid to?
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Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
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Which of the following claims are typically excluded from Medical expense policies?
Which of the following claims are typically excluded from Medical expense policies?
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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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Which characteristic is associated with a large group disability income policy?
Which characteristic is associated with a large group disability income policy?
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Which of the following medical expenses does Cancer insurance NOT cover?
Which of the following medical expenses does Cancer insurance NOT cover?
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What is the minimum percentage of eligible employees that must be covered in a company that pays the entire premium for its group health plan?
What is the minimum percentage of eligible employees that must be covered in a company that pays the entire premium for its group health plan?
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What is issued to each employee of an employer health plan?
What is issued to each employee of an employer health plan?
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All students attending a large university could be covered by what type of policy?
All students attending a large university could be covered by what type of policy?
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What is true after the expiration of COBRA laws for an employee wanting to convert their group health coverage to an individual policy?
What is true after the expiration of COBRA laws for an employee wanting to convert their group health coverage to an individual policy?
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The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as?
The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as?
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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 statement is true regarding a minor beneficiary?
Which statement is true regarding a minor beneficiary?
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If the insured and primary beneficiary are both killed in the same accident, where are the death proceeds directed under the Uniform Simultaneous Death Act?
If the insured and primary beneficiary are both killed in the same accident, where are the death proceeds directed under the Uniform Simultaneous Death Act?
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A policyowner's rights are limited under which beneficiary designation?
A policyowner's rights are limited under which beneficiary designation?
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What type of beneficiary allows the policyowner to change the designation at any time?
What type of beneficiary allows the policyowner to change the designation at any time?
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How much of the death benefit will the mother receive if T and S die in an accident and S's death precedes the father's?
How much of the death benefit will the mother receive if T and S die in an accident and S's death precedes the father's?
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What is the difference between group insurance and blanket health policies?
What is the difference between group insurance and blanket health policies?
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Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the what?
Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the what?
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Which statement 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 statement 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 loss?
An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which loss?
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Group/voluntary long-term care policy premiums are typically deducted from the employee's income and?
Group/voluntary long-term care policy premiums are typically deducted from the employee's income and?
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What will the insurance company do if T requests a change of beneficiary on an AD&D policy with an irrevocable beneficiary?
What will the insurance company do if T requests a change of beneficiary on an AD&D policy with an irrevocable beneficiary?
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The benefits under a Disability Buy-Out policy are?
The benefits under a Disability Buy-Out policy are?
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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?
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Study Notes
Business Disability Buy-Sell Policy
- Designed to assist in the sale of a business when an owner becomes disabled.
Accident Coverage
- Commercial airline passengers are covered under a Blanket Accident policy for Accidental Death.
HIPAA
- Protects the privacy of health information.
Accidental Death and Dismemberment (AD&D) Policy
- If a policyholder with a $50,000 policy loses a finger, the maximum payout is $25,000 (capital sum).
- An irrevocable beneficiary designation prevents changes without beneficiary consent.
Short Term Medical Policies
- Best described as interim coverage.
COBRA Regulations
- Allows continued group health benefits for workers whose employment has been terminated.
- Coverage can end if the employer terminates all group health plans.
Group Health Plans
- Employees contribute premiums in a contributory plan.
- The employer receives a master policy while employees get certificates.
Number of Employees Coverage
- Noncontributory group health plans require 100% participation by eligible employees.
Insurance Beneficiary Designations
- A contingent beneficiary receives proceeds if the primary beneficiary dies before the insured.
- If both insured and primary beneficiary die in an indistinguishable manner, proceeds go to the contingent beneficiary under the Uniform Simultaneous Death Act.
Medical Expense Policies
- Exclude claims for intentionally self-inflicted injuries.
Policy and Coverage Types
- Business Overhead Expense policies cover fixed business expenses during the owner's disability.
- Accident policies typically pay benefits for off-the-job accidents.
- Blanket policies cover transient groups with changing members, like university students.
Claims Procedures
- Reimbursement for injuries caused by a third party is known as subrogation.
- If an employee dies, dependents can continue coverage under COBRA regulations for up to 36 months.
Insurance Payment Structures
- Business Overhead Expense policies cover fixed expenses like utilities and office rent during an owner's disability.
- Individual disability income policy premiums are not tax-deductible; however, benefits are tax-free.
Accident Coverage Definitions
- Policies using "accidental bodily injury" are less restrictive compared to those using "accidental means".
Common Disaster Clause
- In accidents where both insured and beneficiary die, proceeds are paid to a contingent or secondary beneficiary.
Additional Points
- Group voluntary long-term care insurance premiums are typically lower than individual policies.
- An employer must allow a new employee to sign an enrollment card for group health insurance without needing to provide evidence of insurability after COBRA expiration.
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Description
Test your knowledge on health and accident insurance with these flashcards. This quiz covers important concepts such as Business Disability Buy-Sell policies and Accidental Death coverage for commercial airline passengers. Perfect for students or professionals looking to reinforce their understanding.
