Chap. 7 Flashcards
Q: In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%
Q: How are individually-owned disability income benefits taxed once received by the insured?
A: Disability benefits are not taxed; they are received income tax free
Q: In order to be eligible for coverage by an HSA, an individual must also be covered by what type of health plan?
A: High Deductible Health Plan (HDHP)
Q: What is the tax advantage of the employer paying premiums for its employees for disability income insurance?
A: Premiums are deductible as a business expense
Q: How are the benefits of group accidental death and dismemberment policy received?
A: Income tax free
Q: How are excess funds in an employee’s health savings account (HSA) handled?
A: The funds can be carried forward to the next year
Q: How long do short-term disability group plans pay benefits?
A: For a period of less than 2 years
Q: Under what employer-provided plan are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?
A: Disability income
Q: Under a fully contributory health plan, how are benefits received by the employee?
A: Income tax free
Q: What are the tax implications for employer contributions to Health Reimbursement Accounts?
A: Employer contributions are tax deductible as business expenses
Q: How are benefits received by the business from a key person disability insurance?
A: Income tax free
All of the following coverages are usually included under a dental insurance plan EXCEPT
Teeth whitening
Under most dental plans, what limitations are posed for denture replacement?
Once every 5 years
?Which type of dental care would cover operative treatment of the mouth?
?Which type of dental care services would cover the costs of the extraction of wisdom teeth?
Oral surgery
Dental Expense policies generally have a deductible that would apply to all of the following EXCEPT
Preventive care.
