Insurance Flashcards
What are the dividend options with life insurance?
Cash
Reduce premium
Accumulate interest
Paid-up additions
One-year term policy
CRAPO
What are the nonforfeiture options for life insurance?
Cash surrender value
Reduced paid-up
Extended term insurance
Are life insurance premiums paid by the insured tax deductible by the insured?
No
Are group life insurance premiums paid by an employer deductible by the employer?
Yes
Are group life insurance premiums paid by the employer taxable income to the employee?
Only in excess of $50k
What year did the taxation of annuity withdrawals change from FIFO to LIFO?
1982
At what age can catch-up contributions begin for HSAs?
55
At what age do penalties for non-qualified medical expense distributions end for HSAs?
65
How long does COBRA continue for each circumstance?
18 months for termination or reduction of hours, 36 months for everything else
How does the taxation of disability insurance benefits work?
-if employee pays the premium with after tax dollars, premiums are not deductible and the benefits are tax free
-if employer pays the premium, the premiums are deductible to the employee, but the benefits are taxed
-if the employee pays with pre-tax dollars, benefits are taxed
What is the difference between named and open peril policies?
The named peril policies are basic and broad, and actually name what’s covered, whereas the open perils policies names what isn’t covered
What isn’t covered by Medicare Part B?
-dental care, dentures
-cosmetic surgery
-hearing aids
-eye exams
What is the coinsurance formula?
(Insurance face value / 80% x replacement cost) x loss, - deductible
What are the 6 ADLs?
BED To Chair
Bathing, Eating, Dressing, Transferring, Toilet, Continence
WALKING IS NOT AN ADL
Name the HOI forms
1 - basic
2 - broad
3 - open
4 - rental
6 - condo
8 - historic
What is the difference between a peril and a hazard?
Peril causes a loss,
Hazard creates or increases the likelihood of a loss
What is the difference between implied, express, and apparent authority?
Implied: based on business cards, letterhead, signage, etc.
Express: agreement between the agent and the company
Apparent: when no authority actually exists
What is the benefit period of Medicare Part A?
-begins on 1st day
-ends after 60 days of no further skilled care
What is the deductible for Medicare Part A?
$1600 per benefit period
What are the Medicare Part A costs after 60 days?
Days 61-90: $400
Days 91-150: $800
What are the Medicare Part A skilled nursing costs?
1-20: free
21-100: $200 per day
Are custodial care services provided by Medicare Part A?
No
How many lifetime reserve days are there with Medicare Part A?
60 (days 91-150)
How much does a child under 18 or a spouse with a child under 16 receive for purposes of
Retirement?
Survivorship?
Disability?
Retirement: 50%
Survivorship: 75%
Disability: 50%
