HEALTH AND ACCIDENT Flashcards
business overhead expense and disability plan covers
fixed business expenses
what does REDUCTING TERM insurance cover?
business outstanding loans if the person is disabled
BUSINESS DISABILITY BUY-SELL policy covers a business in case the
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
Which parent will FIRST cover a child?
the parent who’s birthday is first in the calendar year
Tart-Hartley Trusts are also know as
negotiated trusts
How many days can an employee convert to and independent policy under the Conversion Policy?
31 days
Under the ACCIDENTAL DEATH TIME LIMIT POLICY, how many days must a person die before receiving additional benefits?
90
4 types of health coverage:
- medical expense insurance
- disability income insurance
- accidental death and dismembership coverage
- interim coverage
medical expense insurance
reimburses the insured for medical expenses, 2 types include long term care and medicare suppliments
disability income
replacement of income when wages are lost due to disability
accidental death and dismemberment insurance
lump sum amount in the event of an accidental death or dismemberment
interim coverage
short term policies when in between jobs or waiting for a job to start
interim coverage
short term policies when in between jobs or waiting for a job to start
how are health insurance premiums calculated?
interest, expense, type of insurance, and morbidity
business continuation plans
continue operation of business in the event of disabling sickness or injury of key person
employee benefit plans
helps EMPLOYEE in the case of disability or sicknessq
business overhead expenses are sold to
private practices, self-employed business owners
what is business overhead expenses designed to do?
reimburse a business of overhead expenses in the event a business owner becomes disabled, and designed to help operate the day to day business
what is business overhead expenses designed to do?
reimburse a business of overhead expenses in the event a business owner becomes disabled, and designed to help operate the day to day business
what do overhead expenses include?
rent, utilities, telephones, leased equipment, and employee’s salaries.
it does NOT include: compensation of business owner
premiums for overhead expense insurance is
tax-deductible business expense, but when paid benefits are taxable income
DISABILITY BUY-SELL PLAN aka Buy-Out is funded by
disability income policy; premiums are NOT tax deductible and benefits are received TAX FREE
key person disability insurance
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
The contract for a group insurance policy is between the
insurer and employer
Coordination of Business purpose is to
avoid duplicate insurance and overpayment when individual is covered in more than 1 health plan
What factors help determine group insurance premiums?
size of the group, claims with previous insurers, and age of group members
noncontributory
employee does NOT contribute to paying the bill; must be 100% of employees
contributarory
employee contributes in paying the premium; must be at least 75% of employees
