1- Health and Accident Insurance

Business owner becoming disabled A Business Disability Buy-Sell policy is designed to assist in the sale of a business when one of the owners becomes disabled.

Blanket Accident policy A Blanket Accident policy provides Accidental Death coverage to airplane passengers.

The Health Insurance Portability and Accountability Act (HIPAA) provides privacy protection for health information.

The maximum sum payable would be the capital sum, or $25,000.

A short term medical policy is best described as interim coverage.

If the primary beneficiary dies before the insured A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured's death.

All group health plans are terminated by the employer One of the disqualifying events that can result in the termination of continuing coverage under COBRA is when the employer terminates all group health plans.

continue group health benefits

Contributory Group plans where employees pay a portion of the premiums are called contributory plans.

Policyowner The policyowner has the right to change the beneficiary designation. However, consent may needed by the current beneficiary if designated as irrevocable.

Disability Buy-Sell A disability buy-sell plan allows the remaining partners to buy out the interest of the disabled business partner.

Irrevocable

P only In this situation, benefits will be paid to P because P survived the accident and is the primary beneficiary.

Reimbursement When benefits are paid to a policyowner covered under a Hospital Expense policy, the policy is known as reimbursement.

Intentionally self-inflicted injuries Medical expense policies usually EXCLUDE coverage for claims resulting from treatment of intentionally self-inflicted injuries.

the employer receives a master policy and the employees receive certificates

The employer receives the policy and each employee is issued a certificate With a group accident and health plan, a master policy is issued to the employer and each employee receives a certificate of insurance.

No medical underwriting A large group disability income policy can be distinguished by no medical underwriting.

Arthritis

Daughter With a common disaster provision, a policyowner can be sure that if both the insured and the primary beneficiary die within a short period of time, the death benefits will be paid to the contingent beneficiary.

100% Most noncontributory group health plans require 100% participation by eligible employees.

Certificate

a blanket policy Blanket health insurance is issued to cover a group who may be exposed to the same risks, but the composition of the group (the individuals within the group) are constantly changing.

The correct answer is "She does NOT need to provide evidence of insurability". Under COBRA, conversion of group accident and health coverage to an individual policy does not require evidence of insurability.

Employee's premiums paid by the employer is tax-deductible to the employer as a business expenditure Premiums paid by an employer for an employee's coverage are deductible by the employer as a business expense.

Subrogation Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid to the insured for the loss.

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.

Insured's contingent beneficiary Under the Uniform Simultaneous Death Act, if both insured and primary beneficiary are killed in the same accident and there is insufficient evidence to show who died first, policy proceeds will be paid as if the insured died last. In other words, the proceeds will be paid to the secondary or contingent beneficiary.

Irrevocable

Revocable With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.

$0 The mother receives $0 because T is still alive and the sole primary beneficiary, while the mother is still the contingent beneficiary.

Subrogation

The correct answer is "36". Under COBRA, if an employee dies, the dependents may continue their group health coverage for up to 36 months.

the policy will pay $300,000.

An individual policy is given to each member In group health insurance, each member receives a certificate of insurance, not an individual policy.

Business Overhead Expense A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the business owner is disabled.

Proceeds will go to the contingent beneficiary

The correct answer is "fixed business expenses". The reason for a business having a Business Overhead Expense Disability Plan is to cover fixed business costs in the event the owner becomes disabled.

Business Overhead Expense A Business Overhead Expense policy covers fixed business expenses in the event of the owner becoming unable to work due to an accident or illness.

to pay benefits to the Corporation or other shareholders

The correct answer is "Single premium". Single premium is not used when paying for health insurance policies.

Sign an enrollment card A new employee must sign an enrollment card during the open enrollment period.

Utilities and office rent A Business Overhead Expense policy is designed to cover certain overhead expenses (rent, taxes, utility bills, employee's salaries etc) that continue when the business owner is disabled.

The waiting period in a Group Health policy gives an insurance company the rights to delay coverage for a covered sickness for a specified number of days after the effective date of the policy.

Business Overhead Expense A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the businessowner is disabled.

Premiums are lower

prevents an insured covered by two health plans from making a profit on a covered loss

Irrevocable beneficiary An irrevocable designation may not be changed without the written consent of the beneficiary.

off-the-job accident

Blanket health policies do not issue certificates

Primary carrier In double coverage situations, the insurer covering the employee who has the claim is called the primary insurance company. The primary company must pay as much of the claim as the policy limits permit.

Less restrictive A policy that uses the "accidental bodily injury" definition of an accident is less restrictive than the one that uses the "accidental means" definition.

Loss of eyesight due to an accidental injury

are less costly as compared to individual long term care coverage The premiums on a group/voluntary policy are usually deducted from an employee's wages and are generally lower than the premiums on an individual policy.

Request of the change will be refused An irrevocable designation may not be changed without the written consent of the beneficiary.

payable to the company or another shareholder

Business Overhead Expense A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue when the business owner is disabled.

Disability income policy premiums are tax-deductible Premiums paid by individuals for Disability income policies are NOT tax-deductible. However, the benefits would be considered tax-free to the individual.

Proceeds will be paid to P's estate Because the sole beneficiary outlived the insured, the proceeds will be payable to the estate of the deceased beneficiary.

covers business expenses such as rent and utilities