Questions and Answers
Under which of the following circumstances do the benefits under COBRA continuation coverage expire?
What policy BEST addresses the concern of business survival if the owner becomes disabled?
Business Overhead Expense Insurance
How does group insurance differ from individual insurance?
Provides coverage at a lower cost
What type of carrier is T's employer's plan considered under the Model Group Coordination of Benefits provision?
Signup and view all the answers
What describes the tax treatment of premiums and benefits of individual Accident and Health insurance?
Signup and view all the answers
What is the provision that allows the insurer to postpone coverage for 30 days after the policy's effective date?
Signup and view all the answers
What does a Business Overhead Expense policy cover?
Signup and view all the answers
What circumstance is a Business Disability Buy-Sell policy designed to help with?
Signup and view all the answers
What is correct regarding an employer/employee group health plan?
Signup and view all the answers
How can the federal income tax treatment of employer-provided group health insurance be accurately described?
Signup and view all the answers
How does a policy that uses the 'accidental bodily injury' definition differ from one using the 'accidental means' definition?
Signup and view all the answers
What is also called a short term medical policy?
Signup and view all the answers
Study Notes
COBRA Continuation Coverage
- Benefits under COBRA expire if the employer terminates all group health plans.
Disability Insurance for Business Owners
- Business Overhead Expense Insurance is specifically designed for business owners concerned about financial stability in case of disability.
Group vs Individual Insurance
- Group insurance offers coverage at a lower cost compared to individual insurance.
Coordination of Benefits
- In cases of double coverage, the health plan covering the employee (T) is classified as the "primary carrier," responsible for paying claims first.
Tax Treatment of Insurance Policies
- Premiums for individual Accident and Health insurance, specifically disability income policies, are not tax-deductible.
Group Health Policy Provisions
- The waiting period provision in a Group Health policy allows the insurer to defer coverage for a covered illness for 30 days from the policy's effective date.
Business Overhead Expense Policies
- Such policies cover essential business expenses like rent and utilities when the business owner is unable to work.
Business Buy-Sell Policies
- A Business Disability Buy-Sell policy is intended to manage the sale of a business if the owner becomes disabled.
Group Health Plans
- In an employer/employee group health plan, the employer holds a master policy while employees receive individual certificates of coverage.
Tax Treatment of Employer-Provided Insurance
- Premiums paid by employers for employee group health insurance are tax-deductible as a business expense.
Definitions of Accident in Insurance
- Policies defining accidents as "accidental bodily injury" are less restrictive than those termed "accidental means."
Short Term Medical Policies
- Short term medical policies are also referred to as interim coverage.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on health insurance concepts such as COBRA continuation coverage and how disability affects small business owners. This quiz covers important terms and definitions essential for understanding health insurance policies.
