Chapter 4 - Group Insurance - The Basics Flashcards
A company may provide group insurance for each of the following EXCEPT:
a. Officers
b. Employees who are members of a labor union
c. Directors
d. Shareholders
d. Shareholders
Which of these provides coverage only if an employee chooses to join the group?
a. a non-contributory group policy
b. a contributory group policy
b. a contributory group policy
Which of the following statements regarding a single employer group plan for a new business is CORRECT?
a. Proof of insurability will not be required and the Insurer will use “community” rating.
b. The plan will always be contributory.
c. Proof of insurability is always required for new enrollees.
d. “Experience” rating will be used because of the group’s long experience claim’s history.
a. Proof of insurability will not be required and the Insurer will use “community” rating.
An employee covered under an employer group policy will receive which written document that outlines coverage and provides evidence that group coverage is in effect?
a. A rider.
b. An extension.
c. A policy.
d. A certificate of insurance.
d. A certificate of insurance.
In a group policy situation, who receives the policy certificate?
a. The employee
b. The Insurer
c. The employer
d. The state insurance regulator
a. The employee
In a noncontributory plan, what percentage of eligible employees will be covered under a Group Health plan?
a. 0%
b. 50%
c. 75%
d. 100%
d. 100%
Paul has a Group Health plan at work. His employer pays the whole premium and Paul does not have to pay anything for the coverage. What is this type of plan called?
a. A contributory plan.
b. A noncontributory plan.
c. A deferred compensation plan.
d. A split dollar plan.
b. A noncontributory plan.
In a contributory plan, at least what percentage of eligible employees must participate in the group plan?
a. 0%
b. 50%
c. 75%
d. 100%
c. 75%
Which of the following is correct regarding an association buying group insurance?
a. The group cannot be formed for the purpose of buying insurance.
b. The members each receive a copy of the policy.
a. The group cannot be formed for the purpose of buying insurance.
New point, be sure to read the explanation! A Hospital Indemnity Policy’s Elimination Period is applied:
a. Monthly
b. Once per each hospital stay
c. Every six months
d. Once per year
b. Once per each hospital stay
In a noncontributory plan, what will eligible group members need to do to enroll other than complete an application?
a. Submit the first premium.
b. Nothing. Enrollment is automatic.
c. Prove insurability.
d. Submit an application.
b. Nothing. Enrollment is automatic.
A Hospital Indemnity Policy:
a. Is an indemnity policy.
b. Pays even if other insurance has already paid for the hospital stay.
b. Pays even if other insurance has already paid for the hospital stay.
With group insurance, the Insured receives:
a. A certificate of insurance.
b. A letter of coverage.
c. An appointment letter.
d. A copy of the insurance policy.
a. A certificate of insurance.
The time period one must be employed before becoming eligible for group Disability Income or Health Insurance is known as the:
a. Waiting period
b. Probationary period
b. Probationary period
Each of the following statements regarding noncontributory plans is correct EXCEPT?
a. All eligible employees are automatically covered.
b. Each employee must be given the right to select individual benefit levels.
c. The plan may use a probationary period to determine when the employee is eligible to participate in the group insurance.
d. The employer pays for the coverage.
b. Each employee must be given the right to select individual benefit levels.
