Disability Insurance Flashcards
A disability elimination period is best described as a _____
Time deductible
A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
Partial disability
What percentage of a participant’s income are group long-term disability benefit amounts typically limited to?
60%
The factor used most often when underwriting a disability income policy is _____?
Annual earnings
The waiting (elimination) period for a disability insurance policy __
excludes payments for a short-term illness or injury
The waiver of premium does NOT include which provision?
All future premiums are waived if the insured recovers from the disability
What disability policy provision would address any concerns of the value of the benefits decreasing over time?
Cost of living benefit
Which type of disability would be less than total impairment and equal to permanent impairment?
Permanent partial disability
What is a presumptive disability provision?
This provision states certain conditions that automatically qualify the insured for the full benefit amount because the severity of the conditions presumes the insured is totally disabled, even if the insured is able to work.
Which of the following statements regarding Group Disability Income Insurance is true?
It provides benefits for nonoccupational illnesses and injuries
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of ___?
100% of costs
What is NOT a qualification for establishing an HSA?
Enrolled in a health plan with a prescription drug benefit
What is a benefit schedule?
A health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses.
What is the tax liability for employer contributions in Health Savings Accounts (HSA’s)?
No tax payment needed
How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company?
With a usual, customary, and reasonable fee
Which of the following statements is NOT true regarding a Critical Illness Plan?
Coverage is limited to a single devastating disease
What is an Integrated Deductible?
A single deductible applied to both medical and dental insurance coverage
Low frequency diseases can be exclusively covered by what kind of health insurance policies?
Limited policies
When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid?
No deductible payment is required
A pharmacy benefit covers prescription drugs derived from a list called ___?
A drug formulary
Which plan does NOT allow for employee contributions to be taken on a pre-tax basis?
Health Reimbursement Arrangement Plan. Employers contribute to these, not employees.
Maximum benefit refers to the _____
Upper limits of the total lifetime benefits the insurance company will pay
A health insurance policy is incontestable after it has been in force for ____ years.
Two (2)
After purchasing an individual health insurance contract, policyowners have ___ days from the date of receiving the policy to return it for a full refund for any reason.
Ten (10)
How many days is the free-look period for Medicare supplements and long-term care insurance?
Thirty (30)
In Minnesota, an employee of a small employer MUST work an average of at least ___ per week to be considered full time.
Twenty (20)
An example of rebating would be ___
Returning a portion of premium an inducement to purchase insurance
In Minnesota, legal action can be taken against an insurer for failure to pay health insurance claims for a period not to exceed ___ years.
Three (3)
Insured losses are covered immediately after a health policy is reinstated when ____
The losses result from accidental injuries
To be classified as a small employer in Minnesota, an employer must employ ___
1-50 employees
When a health policy requires payment of an additional premium to provide coverage for a newborn, the first payment is due ___ days after the date of birth.
31
When an insured suffers a loss, written proof must be furnished to the health insurer within ___ days.
90
When the insured gives birth, coverage for eligible newborns consist of coverage for injury or sickness including
Birth abnormalities
Which of these conditions must be covered under a Long-Term Care policy?
Senile dementia
Every ___ year(s), a producer must complete 24 hours of Continuing Education.
2
How many days is a temp producer’s license valid?
180
In Minnesota, a health policy that is paid on a quarterly basis requires a grace period of ____?
31 days
The Commissioner of Commerce is appointed by the _____
Govenor
Long-Term care policies sold in Minnesota are required to contain cost disclosure information in bold print. Where does the law require this information to be located?
Outline of Coverage
The Minnesota Life and Health insurance Guaranty Association is funded by authorized insurers in this State. One of the roles of this organization is to _____
Assist in the prevention of insurer insolvencies
Once the Insurance Company receives a notice of claim, they have ___ days to send the claim form.
15
What does a Medicare Supplement policy cover?
Allowable amounts under Medicare Part B
What is the Minimum benefit period that must be offered by a Long-Term Care policy?
12 months or 1 year
When does the Free-look period begin for any health policy?
Date of policy delivery
A lapsed health insurance policy has recently been reinstated. How long after reinstatement must an insured wait before coverage for sickness is available?
10 days
If an insurer becomes insolvent, the Minnesota Life and Health Guaranty Association guarantees individual health claims up to ___?
$500,000
An insurance producer must notify the Commissioner of Commerce within how many days of conviction of a crime?
30 days
A ______ ______ is the signed document that starts the free-look period
Delivery receipt
The Commissioner of Commerce attains office in which of the following ways?
Gubernatorial appointment
