Podcast
Questions and Answers
How are the $3,000 benefit payments taxable for T?
How are the $3,000 benefit payments taxable for T?
- Not taxable
- Taxable to T (correct)
- Taxable to both
- Taxable to employer
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Inspection report
How are pre-admission certifications used?
How are pre-admission certifications used?
Used to prevent nonessential medical costs
Which of the following are NOT managed care organizations?
Which of the following are NOT managed care organizations?
Substandard applicants are never declined by underwriters.
Substandard applicants are never declined by underwriters.
What action would the insurance company NOT take when the MIB report shows undisclosed information?
What action would the insurance company NOT take when the MIB report shows undisclosed information?
What actions should an agent take if a customer wants to apply for an insurance policy?
What actions should an agent take if a customer wants to apply for an insurance policy?
How much of the $2,000 a month Disability Income is subject to federal income tax?
How much of the $2,000 a month Disability Income is subject to federal income tax?
Which action will an insurance company most likely NOT take if an applicant with diabetes applies for a Disability Income policy?
Which action will an insurance company most likely NOT take if an applicant with diabetes applies for a Disability Income policy?
What is pre-hospitalization authorization considered an example of?
What is pre-hospitalization authorization considered an example of?
Which type of plan normally includes hospice benefits?
Which type of plan normally includes hospice benefits?
Which mode of payment is NOT used by health insurance policies?
Which mode of payment is NOT used by health insurance policies?
What will the insurance company do next after a producer takes an individual Disability Income application?
What will the insurance company do next after a producer takes an individual Disability Income application?
Study Notes
Disability Income Insurance
- Benefits from an employer-funded Disability Income policy, such as $3,000/month, are taxable to the recipient.
- Premiums paid entirely by the employer allow them to deduct the costs, making benefits taxable for the employee.
Insurance Reports
- Information from phone conversations with the proposed insured is documented in inspection reports.
Pre-admission Certification
- Used by insurance companies to prevent unnecessary medical expenses.
Managed Care Organizations
- Medical Information Bureau (MIB) is not classified as a managed care organization.
Applicant Classification
- Substandard applicants can be rated as such or even declined outright by underwriters, contradicting the incorrect belief that they are never declined.
Medical Information Bureau (MIB)
- Insurance companies do not need to notify the MIB when an applicant is declined for coverage, even if medical history reveals undisclosed information.
Agent Responsibilities
- Agents should complete the application and review it with the customer before obtaining their signature, then submit the application to the insurer.
Taxation on Disability Benefits
- Disability income benefits from an individual policy, fully paid by the policyowner, are not subject to federal income tax.
Diabetes and Disability Income Policies
- An insurance company will likely not issue a policy with altered Time of Payment of Claims for applicants with diabetes.
Managed Care Benefits
- Pre-hospitalization authorization is a managed care practice requiring insurer approval before hospital admission.
- Managed care plans generally include hospice benefits.
Health Insurance Payment Modes
- Single premium payment mode is not typically used for health insurance policies.
Underwriting Process
- After an applicant submits an individual Disability Income application and receives a conditional receipt, the next step involves standard underwriting to assess risk.
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Description
Test your knowledge of health insurance underwriting concepts with these flashcards. Each card covers important definitions and tax implications related to disability income insurance. Perfect for students and professionals preparing for exams in the insurance field.
