HEALTH AND ACCIDENT

Question 1

business overhead expense and disability plan covers

Answer 1

fixed business expenses

Question 2

what does REDUCTING TERM insurance cover?

Answer 2

business outstanding loans if the person is disabled

Question 3

BUSINESS DISABILITY BUY-SELL policy covers a business in case the

Answer 3

business owner becoming disabled; sets the terms for buying/selling the partner’s share of the business in the case she can no longer participate in the business

Question 4

Which parent will FIRST cover a child?

Answer 4

the parent who’s birthday is first in the calendar year

Question 5

Tart-Hartley Trusts are also know as

Answer 5

negotiated trusts

Question 6

How many days can an employee convert to and independent policy under the Conversion Policy?

Answer 6

31 days

Question 7

Under the ACCIDENTAL DEATH TIME LIMIT POLICY, how many days must a person die before receiving additional benefits?

Answer 7

90

Question 8

4 types of health coverage:

Answer 8

1. medical expense insurance
2. disability income insurance
3. accidental death and dismembership coverage
4. interim coverage

Question 9

medical expense insurance

Answer 9

reimburses the insured for medical expenses, 2 types include long term care and medicare suppliments

Question 10

disability income

Answer 10

replacement of income when wages are lost due to disability

Question 11

accidental death and dismemberment insurance

Answer 11

lump sum amount in the event of an accidental death or dismemberment

Question 12

interim coverage

Answer 12

short term policies when in between jobs or waiting for a job to start

Question 13

interim coverage

Answer 13

short term policies when in between jobs or waiting for a job to start

Question 14

how are health insurance premiums calculated?

Answer 14

interest, expense, type of insurance, and morbidity

Question 15

business continuation plans

Answer 15

continue operation of business in the event of disabling sickness or injury of key person

Question 16

employee benefit plans

Answer 16

helps EMPLOYEE in the case of disability or sicknessq

Question 17

business overhead expenses are sold to

Answer 17

private practices, self-employed business owners

Question 18

what is business overhead expenses designed to do?

Answer 18

reimburse a business of overhead expenses in the event a business owner becomes disabled, and designed to help operate the day to day business

Question 19

what is business overhead expenses designed to do?

Answer 19

reimburse a business of overhead expenses in the event a business owner becomes disabled, and designed to help operate the day to day business

Question 20

what do overhead expenses include?

Answer 20

rent, utilities, telephones, leased equipment, and employee’s salaries.
it does NOT include: compensation of business owner

Question 21

premiums for overhead expense insurance is

Answer 21

tax-deductible business expense, but when paid benefits are taxable income

Question 22

DISABILITY BUY-SELL PLAN aka Buy-Out is funded by

Answer 22

disability income policy; premiums are NOT tax deductible and benefits are received TAX FREE

Question 23

key person disability insurance

Answer 23

pays MONTHLY benefit to business to cover expenses for additional help or outside services when a person is disabled; benefits received are TAX FREE because premiums are NOT TAX DEDUCTIBLE

Question 24

The contract for a group insurance policy is between the

Answer 24

insurer and employer

Question 25

Coordination of Business purpose is to

Answer 25

avoid duplicate insurance and overpayment when individual is covered in more than 1 health plan

Question 26

What factors help determine group insurance premiums?

Answer 26

size of the group, claims with previous insurers, and age of group members

Question 27

noncontributory

Answer 27

employee does NOT contribute to paying the bill; must be 100% of employees

Question 28

contributarory

Answer 28

employee contributes in paying the premium; must be at least 75% of employees