Podcast
Questions and Answers
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?
- Employee voluntarily leaves the job
- Employee becomes eligible for Medicare
- Employer terminates all group health plans (correct)
- Dependent becomes ineligible due to age
What policy BEST addresses the concern of business survival if the owner becomes disabled?
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?
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?
What type of carrier is T's employer's plan considered under the Model Group Coordination of Benefits provision?
What describes the tax treatment of premiums and benefits of individual Accident and Health insurance?
What describes the tax treatment of premiums and benefits of individual Accident and Health insurance?
What is the provision that allows the insurer to postpone coverage for 30 days after the policy's effective date?
What is the provision that allows the insurer to postpone coverage for 30 days after the policy's effective date?
What does a Business Overhead Expense policy cover?
What does a Business Overhead Expense policy cover?
What circumstance is a Business Disability Buy-Sell policy designed to help with?
What circumstance is a Business Disability Buy-Sell policy designed to help with?
What is correct regarding an employer/employee group health plan?
What is correct regarding an employer/employee group health plan?
How can the federal income tax treatment of employer-provided group health insurance be accurately described?
How can the federal income tax treatment of employer-provided group health insurance be accurately described?
How does a policy that uses the 'accidental bodily injury' definition differ from one using the 'accidental means' definition?
How does a policy that uses the 'accidental bodily injury' definition differ from one using the 'accidental means' definition?
What is also called a short term medical policy?
What is also called a short term medical policy?
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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.
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