Chapter 1: Health and Accident Flashcards
Which type of policy pays benefits to a policyholder covered under a hospital expense policy?
Reimbursement
What kind of AD&D insurance beneficiary requires his/her consent when a change of beneficiary is made?
irrevocable beneficiary
G is an accountant who has ten employees and is concerned how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is:
business overhead expense
Group/voluntary long term care policy premiums are typically deducted from the employees income and
are less costly as compared to individual long term care coverage
On AD&D insurance policy who is qualified to change the beneficiary designation?
policyowner
What is issued to each employee of an employer health plan
certificate
The benefits under a disability buy-out policy are
payable to the company or another shareholder
An insurance company would MOST likely pay benefits under an AD&D policy for which of the following losses?
Loss of eyesight due to an accidental injury
Which type of policy would pay an employee’s salary if the employer was injured in a bicycle accident and out of work for six weeks?
business overhead expense
A business overhead expense policy
covers business expenses such as rent and utilities
P is a new employee and will be obtaining non-contributory group major medical insurance from her employer. Which of the following actions must she take during the open enrollment period?
Sign an enrollment card
All of the following statements regarding group health insurance is true EXCEPT
an individual policy is given to each member
P loses an arm in a farm accident and is paid $10,000 from his AD&D policy. This benefit is known as the
capital sum
J has an AD&D policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?
$25,000
Which of the following is the reimbursement of benefits for the treatment of a beneficiary’s injuries caused by a third party?
subrogation
Which of these circumstances is a business disability buy-sell policy designed to help in the sale of a business?
business owner becoming disabled
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract
The difference between group insurance and blanket health policies is:
blanket health policies do not issue certificates
The fed income tax treatment of employer provided group medical expense insurance can be accurately described as
employee’s premiums paid by the employer is tax deductible to the employer as a business expenditure
Which of the following statements is correct regarding an employer/employee group health plan?
the employer receives a master policy and the employees receive certificates
Which of the following medical expenses does cancer insurance NOT cover
arthritis
Which of the following claims are typically excluded from medical expense policies
intentionally self inflicted injuries.
Which of the following BEST describes how a policy that uses the “accidental bodily injury” definition of an accident differs from one that uses the “accidental means” definition?
Less restrictive
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 months
A business overhead expense policy would cover which of the following if a business owner becomes disabled?
utilities and office rent
