Under which of the following circumstances do the benefits under COBRA continuation coverage expire?
Employee has become uninsurable
All group health plans are eliminated by the employer
Employer moves headquarters to another state
Employee becomes permanently disabled
answer
All group health plans are eliminated by the employer
question
Which statement is TRUE regarding a group accident & health policy issued to an employer?
Neither the employer or employee are policyowners
The employer is issued a certificate of coverage and each employee receives a policy
The employer is the policyowner and each employee receives a certificate of coverage
Both the employer and employee are policyowners
answer
The employer is the policyowner and each employee receives a certificate of coverage
question
The federal income tax treatment of employer-provided group health insurance can be accurately described as
Employee's coverage paid for by the employer is considered taxable income to the employee
Employee's coverage paid for by the employer is tax-deductible to the employer as a business expenditure
Employer is given tax credits for contributions made to an employer-provided group health plan
Benefits are taxable to the employee
answer
Employee's coverage paid for by the employer is tax-deductible to the employer as a business expenditure
question
Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition?
Double indemnity
Benefits are taxable
More restrictive
Less restrictive
answer
Less restrictive
question
The reason for a business having a Business Overhead Expense Disability Plan is to cover
the cost of providing group disability insurance to the employees
fixed business expenses
the owner's loss of income
all business-related expenses and salaries
answer
fixed business expenses
question
Which of the following characteristics are associated with a large group disability income policy?
No waiting periods
No medical underwriting
No elimination periods
No limit of benefits
answer
No medical underwriting
question
Which contract permits the remaining partners to buy-out the interest of a disabled business partner?
Group Disability
Business Continuation
Disability Buy-Sell
Key Person Disability
answer
Disability Buy-Sell
question
An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?
Loss of life due to a heart attack
Loss of eyesight due to an accidental injury
Loss of the spleen due to an accidental injury
Partial paralysis due to a stroke
answer
Loss of eyesight due to an accidental injury
question
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is
25%
50%
75%
100%
answer
Most noncontributory group health plans require 100% participation by eligible employees
question
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the
Grace Period
Waiting Period
Postponement Period
Elimination Period
answer
Waiting Period
question
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 of the following plans?
Joint
Noncontributory
Contributory
Participating
answer
Contributory
question
Which of the following statements is correct regarding an employer/employee group health plan?
each employee receives a duplicate policy from the insurer
the employer receives a master policy and the employees receive certificates
the employer and the employees both receive actual policies
the employer receives the master policy and the employees receive a summary of benefits
answer
the employer receives a master policy and the employees receive certificates
question
The difference between group insurance and blanket health policies is
Blanket health policies do not issue certificates
Group health policies do not issue certificates
Group health plans may be issued to an airline to cover its passengers
Blanket health policies are sometimes called wholesale plans
answer
Blanket health policies do not issue certificates
question
A Business Overhead Expense policy
covers any loss of income by the business owner
covers business expenses such as rent and utilities
covers employee wages only
reimburses the company for any reduction in sales due to the owner's disability
answer
covers business expenses such as rent and utilities
question
All students attending a large university could be covered by
a blanket policy
a franchise policy
a jumbo group policy
a commercial insurance policy
answer
a blanket policy
question
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary?
$100,000
$200,000
$300,000
$400,000
answer
$300,000
question
Which of these types of coverage is best described as a short term medical policy?
interim coverage
provisional coverage
transitional coverage
conversion coverage
answer
interim coverage
question
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?
36
18
15
6
answer
36
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