Insurance Flashcards
PAP Liability split limits: 100/300/50
100 per person
300 per occurrence
50 property damage
Business Owner Policy (BOP)
general liability
EX: employee attacks client
Medicare Part A
eligible for HOSPITAL INSURANCE if: 65 or disabled
4 broad categories:
(1) hospital care
(2) nursing home
(3) home health
(4) hospice
Medicare Part B
VOLUNTARY through monthly premiums
(1) physicians services
(2) home health services
(3) diagnostic tests
(4) all out patient services
Medicare pays 80% (no stop loss)
Medicare Part D
DRUGS
must have Medicare A and/or B
Medigap (Medicare supplement)
Reimbursement for hospital expenses (Part A)
Reimbursement for 20% share expenses (Part B)
Elimination Period
90 days (disability)
Residual Benefits Rider
benefits proportional to the amount of income lost and payable for the same durations the policy’s max benefit period
Partial Disability Rider
benefit usually 50% of total disability benefit, 3-6 month period max
Disability Waiver of Premium Provision
may waive premiums if insured become totally disabled and the disability last for 90 days or longer
Social Insurance Substitute Benefit (SIS)
If a disabled person gets SS disability benefit of $800, the $1000 SIS will be reduced to $200
Incontestable provision
after 2 years the contract cannot be questioned.
Suicide Clause
within 2 years the insured dies by suicide, the insurance company will only pay the premium paid
Grace Period
number of days allowed for premium in default
APL Provision
if the insured misses a payment, the policy will pull the premium amount from the cash value of the policy
