chapter 11 quiz Flashcards
which of these circumstances is a business disability buy-sell policy designed to help in the sale of a business
business owner becoming disabled
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
J has an accidental death and dismemberment 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 would be a likely candidate for disability income insurance on a key employee?
company executive
which contract permits the remaining partners to buy-out the interest of a disabled business partner?
disability buy-sell
a policy owner would like to change the beneficiary on accidental death and dismemberment insurance policy and make the change permanent. which type of designation would fulfill this need?
irrevocable
how would a contingent beneficiary receive the policy proceeds in accidental death and dismemberment policy
if the primary beneficiary dies before the insured
which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and health insurance?
disability income policy premiums are tax deductible
common exclusions to the continuation of group coverage include
all of the above dental, vision and perscrition drugs
many small business owners worry how their business would survive financially if the owner becomes disabled. the policy which best addresses this concern is
business overhead expense
T is covered by two health insurance plans: a group plan through his employer and his spouses plan as a dependent. Under the model group coordination of benefits provision, when T files a claim, his employers plan is considered the
primary carrier
the difference between group insurance and blanket health policies is
blanket health policies do not issue certificates
which statement is true regarding a minor beneficiary?
normally a guardian is required in the beneficiary clause of the contract
an insured covered by AD&D insurance has just died. what will happen if the primary beneficiary had already died before the insured and contingent beneficiary?
proceeds will go to the contingent beneficiary
B has a $100,000 AD&D 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?
$300,000
what is issued to each employee of an employer health plan
certificate
which of the following is the reimbursement of benefits for the treatment of a beneficiary’s injuries caused by a third party?
subrogation
is the right 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
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
G is an accountant who has ten employees and is concerned about how the business would survive finanacially if G became disabled. the type of policy which BEST addresses this concern is
business overhead expense
which mode of payment is NOT used by health insurance policies
single premium
the coordination of benefits provision
prevents an insured covered by two health plans from making a profit on a covered loss
a business overhead expense policy
covers business expenses such as rent and utilities
XYZ company pays the entire premium for its group health plan. the MINIMUM percentage of eligible employess that must be covered is
100% most noncontributory group health plans require 100%
T is covered by an AD&D policy that has an irrevocable beneficiary. what action will the insurance company take if T requests a change of beneficiary
request of the change will be refused
The consolidated budget reconciliation act (COBRA) give workers and their families whose employement has been terminated the right to
continue group health benefits
which of these types of coverage is best described as a short term medical policy
interim coverage
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
contributory
a policy owners rights are limited under which beneficiary designation
irrevocable
which type of policy would pay an employees salary if the employer was injured in a bicycle accident and out of work for six weeks
business overhead expense
covers fixed business expenses in the event of the owner becoming unable to work due to an accident
which type of policy pays benefits to a policyholder covered under a hospital expense policy
reimbursement
K is the insured and P is the sole beneficiary on a AD&D insurance policy. both are involved in a fatal accident where k dies before P. under the common disaster provision, which of these statements is true
proceeds will go to P’s estate
all students attending a large university could be covered by
a blanket policy
T and S are name co-primary beneficiaries on a $500,000 accidental death and dismemberment policy insuring their father. their monther was named the contingent beneficiary. 5 years later S dies of natural causes and the father is killed in a scuba accident shortly after. how much of the death benefit will the mother receive?
$0 T is still alive
P is insured under a basic cancer plan. which of the following conditions would be covered under this plan
operation for a malignant tumor
